Service tax - reverse charge machanism

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 We are paying to contractor for loading and unloading of material on tonnage basis. Whether it is come under service tax reverse charge machanism as man power supply

Ganeshbabu K

Ganeshbabu K (Expert)
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18 June 2013 1)No it is not manpower supply..hence no reverse charge applicable

2)because it is not coming under definition of manpower supply.

3)irrespective of number of labour involved in work, here payment was fixed by creating a responsibility on labour. by making payment basing on tonnage basis and not on no. of labour involved---so it is not manpower supply.

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 thanks Mr Ganesh. In this case whether the contractor is liable to pay service tax or not. please confirm

Ganeshbabu K

Ganeshbabu K (Expert)
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19 June 2013 1)if he is also paying to labour as per tonnage basis...it is not manpower supply

2)Generally contractor is nothing but he may gather some groups of labour out side..here it is also not a taxable service ..

3)because Person approaching himself and company appointing him on contract basis is not manpower supply service.

4)meaning of manpower supply can be defined as under

“Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’ [Rule 2(g) of Service Tax Rules, inserted w.e.f. 1-7-2012].

Thanks & regards
Ganesh babu k

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