Service tax on manpower services

This query is : Resolved

Saurabh Bansal (Querist)
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04 March 2014 Whether payment to labour for loading & unloading of goods is comes under the reverse charge on Manpower Supply

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 If the labour to whom the payment is made has been SUPPLIED by a contractor, then it is covered under supply of manpower and reverse charge is applicable.

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Saurabh Bansal

Saurabh Bansal (Querist)
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04 March 2014 if labours are supplied by contractor but there is no contract & we are showing in our books direct payment to labour then Service Tax should not be levied ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 Service tax should be levied. This amounts to tax evasion. If and when you get caught, there will be penal action.

Pay service tax under reverse charge mechanism and thereafter claim refund of the same.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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Saurabh Bansal

Saurabh Bansal (Querist)
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07 March 2014 Thanku Sir, But if labour is taken from open field then i think there would not any liability of Service tax.....

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 March 2014 If the labour is EMPLOYED as casual labour, then SERVICE TAX is NOT applicable.

However, PF & ESIC will be applicable.

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