Valuation in case of manpower recruitment and supply agency
This query is : Resolved
05 August 2013
If an assessee engaged in supplying temporary labour to a company engaged in seismic survey and data acquisition. Assessee receive the labour charges along with his service charge of 7.5% of total labour payment.
Whether Service tax leviable on this service is on 7.5% service charge or on total payment (i.e. labour payment+7.5% Sr. Charge)?.
If ST is leviable on labour payment+7.56% Sr. Charge then is there any provision for abatement in ST.
Whether Service tax leviable on this service is on 7.5% service charge or on total payment (i.e. labour payment+7.5% Sr. Charge)?.
If ST is leviable on labour payment+7.56% Sr. Charge then is there any provision for abatement in ST.
CA Suresh Jain
(Expert)
05 August 2013
Service payable on 25% of the aggregate value of Labour payment and commission thereon by you and on 75% of the value by the service receiver if conditions of clause I A (v) of notification 30/2012 are satisfied
Service payable on 25% of the aggregate value of Labour payment and commission thereon by you and on 75% of the value by the service receiver if conditions of clause I A (v) of notification 30/2012 are satisfied
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06 August 2013
But the service provider is charging Service tax @3.09% on 7.5% of the labour payment, is it allowable?
CA Suresh Jain
(Expert)
07 August 2013
What the contractor is charging is not correct.
While making the payment under RCM, you should pay your share correctly
While making the payment under RCM, you should pay your share correctly
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