Contractor service tax

Under the reverse charge system recipient will pay the service tax on work contract services on the value of 50% under Notification No. 30/2012-ST.

If the sevice is excavation of earth then it is purely labour job, not in works contract. if the labour/s engaged in earthwork under direct control & supervision of your contrctor i.e you pay bill your contyractor under quantity basis  then it 's fail under Business Auxiliary service and  service tax payment liability will be fail under the scope of your contractor but when the labours works under your control & supervision i.e you pay your contractor under daily head basis then it will fail under Manpower Supply Service & 75% of total service tax liability will be fail on your scope of liability.