Service tax on labour contractor

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This query is : Resolved

Mohit Naithani (Querist)

03 June 2013 Dear All,
Please help ::
I just receive a 1st bill of labour contractor of Rs 100000.00 for M/o April 13.

Following point is to be noted:

1. His labour is getting wages from company as casual worker and company deduct and deposte PF and ESI upto it.

2. Contractor is Permanent employee of company and getting salary via Bank Tarnsfer.

3. He does'nt charge any service tax on it as its an individual hence Service tax reversal charges is applicable upto it.

4. Now I want to know any other liablity upon Bill and any rule that an employee is able / not able to provide labour to its company???

My contact NO is 09654605754.
Please discuss if you still have any doubt or provide your number so can i call you. upon it.

TKKKKKK

TKKKKKK (Expert)

03 June 2013 so contractor is performing two roles. first he is doing some work for you as employee. I want to know ...what is that work.>>second besides it , he is supplying labours but not in employee capacity. am i right?? so here reverse charge mechanism is applicable. he has to charge 3.09% service tax in his bill. and remaining service tax is payable by you directly to gov department.

Mohit Naithani

Mohit Naithani (Querist)

03 June 2013 He is working as a supervisor.

He is not registered in service tax yet.

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