Service tax on labour contractor
This query is : Resolved
ASHIS KUMAR MISHRA
(Querist)
22 September 2013
Dear Sir,
I have engaged a labour contractor to provide labourers to manufacture brick on contractual rate like say 50 paise per brick.So he will bill us as 40 paise for contractual labours on the basis of number of bricks and 10 paise as his service charges or say his margin.
Here he will charge service tax on total amount like the amount on 50 paise per brick or only on his service charges of 10 paise per brick as he is paying 40 paise to his labourers.Also what percentage of service tax he will charge and rate of service tax.
I have engaged a labour contractor to provide labourers to manufacture brick on contractual rate like say 50 paise per brick.So he will bill us as 40 paise for contractual labours on the basis of number of bricks and 10 paise as his service charges or say his margin.
Here he will charge service tax on total amount like the amount on 50 paise per brick or only on his service charges of 10 paise per brick as he is paying 40 paise to his labourers.Also what percentage of service tax he will charge and rate of service tax.
CA Suresh Jain
(Expert)
23 September 2013
It is not clear from your query that who supervises the workers and also that it is a contract for supply of workers or making the bricks on piece rate basis. Also need a clarification on the constitution of your organisation and the service provider's
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