Sevice Tax on Manpower Supply

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Ashok (Querist)
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28 August 2007 Can any body provide me explainatory material on Applicablity of Service Tax on Civil Contractor?

Thanks

Yash Arya

Yash Arya (Expert)
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28 August 2007 service tax is applicable on various services including commercial or industrial construction services and constructoin of residential complex services, site formation and clearance, excavation and earth moving and demolition service. You need to first ascertain which service category you are falling, then relevant material may be provided.

Ashok

Ashok (Querist)
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28 August 2007 Service is relating to Supply of Labour for Construction of building, also some portion is works contact.

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Raj

Raj (Expert)
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28 August 2007 Yes service tax applicable.

Ashok

Ashok (Querist)
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28 August 2007 can anybody provide me explainatory material on Applicablity of S.T. on Supply of labour, which answers all the issues relating to ST on Supply of Labour.
pls.

CMA Gul S

CMA Gul S (Expert)
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05 September 2007 Authority: Notification No. 23/97-ST, dt. 02/07/1997 (for full text of Notification see under'Consulting Engineer').

Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.

Definition: "manpower recruitment agency"means any commercial concern engaged in providing any service, directly or indirectly, in any manner for recruitment of manpower, to a client; [Section 65(68)]

Taxable service : Placement services by a man power recruitment agency in relation to the recruitment of manpower in any manner.

Value of taxable service: Gross amount charged by manpower recruitment agency from a client for recruitment of manpower services rendered in any manner.

Exemptions
Renting out of premises to participants of trade fair and Election Commission - 2004 (164) ELT 163 (Tri-Del)

Expenses reimbursed on actual basis

Employment Exchanges

Civil/electrical/labour contractors

Educational & Professional institutions Person liable to pay: Manpower Recruitment Agency.