Service tax on labour on contractual agreement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 Dear Experts

If any mfg. co. engages itself with third party as labour on contractual agreement, is the bill raised by the third party liable to add service tax on the bill raised?

Secondly what are the exceptions to the above law, i.e, when no service tax is added to the bill.

tarun goel

tarun goel (Expert)
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22 February 2011 what type of labour agreement? is it supply of labour or job work agreement. please clarify.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 Sir plz clarify with reference to both i.e,

1) If it is an Aggrement as to supply of labour

2) If it is an aggrement as to job work.

tarun goel

tarun goel (Expert)
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22 February 2011 supply of labour is covered under manpower supply services and service tax is payable on that. Job work is covered both under central excise law as well as service tax. for more clarification mail me at tkg1968@rediffmail.com.

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