Service tax on labour contractor.


This query is : Resolved 

19 June 2010 I am working in Dairy product manufcturing Co. and we are taking job from outside person means labour contractor(They apoint worker on daily basis for this job) for packing ,loading, unloading and transfering goods on contract basis and we are paying amount of Qty. basis.

So, i kindly request to clarify and give me opinion for above cases that labour contractor are liable to service tax or not.

Pl. send urgently.

Thanks

19 June 2010 yes.the said transaction is pure labour supply service only. The contractor liable to service tax if his turnover more than Rs.10 lakhs otherwise no

19 June 2010 we kindly clarify that we are paying to labour contractor not to labour and our product are not exciseble.

Pl. further clrify.

Thanks

19 June 2010 Yes. Correct if you are paying directly to labours no service tax, but you are paying to the contract agent so Service tax applicable, Goods excisable or not, no relevance for service tax as receiver

19 June 2010 In above cases the labour contractor recieved notice from department service tax payment.

Pl. give me oipnion for above case.

19 June 2010 If the contractor coming under Service applicability, then the contractor duty to charge service tax and collect from the service provider and pay to the Govt. If the contractor not charged as service receiver you are not bother and incase if the contractor receive the notice from the Department and now contract ask for all the previous you may decide based on your contract term


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