Service tax reverse charge mech concept
This query is : Resolved
06 June 2013
As a construction company if i am giving contract for labour work for tile fixing and other misc work does it fall under the purview of reverse charge mechanism i.e. supply of manpower service??
06 June 2013
it depends
you simply supplied labour to construction company and in construction site those labour work on instructions and supervision of construction company reverse charge will be applicable.
But reverse charge not applicable if labour was not working under supervision of construction company and there is a responsibility for you to complete work and they are working as per your instructions..
so do refer as per above
In short
Service should be manpower supply i.e. under command of Principal Employer.
“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].
2)Service tax payable on salary plus PF, ESI plus commission of labour contractor.
you simply supplied labour to construction company and in construction site those labour work on instructions and supervision of construction company reverse charge will be applicable.
But reverse charge not applicable if labour was not working under supervision of construction company and there is a responsibility for you to complete work and they are working as per your instructions..
so do refer as per above
In short
Service should be manpower supply i.e. under command of Principal Employer.
“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].
2)Service tax payable on salary plus PF, ESI plus commission of labour contractor.
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