Contract Labour

Dear All,

During our excise & service tax audit, excise department is disallowed the credit of service tax paid on group insurance policy taken by the the company for contract labour.

The department contension is that the in the above caes, service tax credit available if he is a company employee. Hence please tell us that contarctor labour is company employee or not???? If yes, please provide us the references.

Regards

Ajay Garg

on gr