Service tax on labour work sub contracted.

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 Hi friends,

I am working in a PVT LTD company undertaking govt. contracts, and most of contracts are exempt from applicability service tax.

We are undertaking construction of roads, bridges, etc. and these activities are exempt from service tax. We also sub contract most of our work on works contract basis so sub contractor also gets exemption from service tax.

Now my question is as:-
If we sub contract only labor work,i.e., material provided by us and work is done by sub contractor, will above sub contracting of labor work would be treated as supply of man power for any purpose and attract service tax liability as per notification no. 30/2012- ST.

CA Suresh Jain

CA Suresh Jain (Expert)

08 September 2012 What is your contact with the sub-contractor. If it is for supply of workers as per your requirement then it can be said to be a contract for supply of manpower liable for RCM.

Where you have given a contract to carry out a specific job e.g. plastering of walls, masonry work, fixing of doors etc.etc., it cannot be treated as service for supply of manpower, rather it is a Job work contract and the service provider only shall be liable to pay service tax

For further clarification please mail the query at sureshjain.nj@gmail.com and pay if you please Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2012 Thank you sir for your reply.

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