27 August 2016
A private limited company engaged in construction of residential flats and sell them. It purchases materials required by paying VAT. It engages labour for various works involved in the construction of flats (Only labour, material purchased already by the company in its name) Currently it is paying service tax under "Construction of residential complex service" on the total cost including land after taking abatement of 70%.
Can the company pay service tax on the value of manpower supply or labour under reverse charge alone. As it uses its own material and engages manpower only?