service tax on provide of labour


This query is : Resolved 

14 September 2010 dear sir

is service of labour payment attract service tax ? i want to details about, pl. give me information
thanks in advance

14 September 2010 Service tax attracts on labour services, but the category based on the nature of service provided

15 September 2010 Normally this is categorised under Manpower Placement Services.

For eg: Labours provided for Gardening Services fall under the above category.

There is no abatement of any kind

Taxable amount is the consideration charged including ESIC benefit if any paid by the provider to his labours.

15 September 2010 Dear Sir,

Supply of man power s subject to service Tax under Section 65(105) (k)
Services of labour contractors are taxable.

Service Tax s to b charged on gross amount of consideration for supply of manpower whether full time or part time.

It includes labour contractor`s fee, wages payable to labourers, statutory payments lik PF, ESI whether paid through contractor or not.

Labour wages Rs. 50k, PF= Rs. 12k and Contractors fee Rs. 10k then Service Tax s payable on Rs. 72k


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