Individual labour contractor provides labour component only (without material) to a company for more than Rs. 1000000/-. (1) What is the liability of company . (2) What is the liabliry of contractor. Please give expert opinion.
Raman (Others) (36 Points)
20 July 2014Individual labour contractor provides labour component only (without material) to a company for more than Rs. 1000000/-. (1) What is the liability of company . (2) What is the liabliry of contractor. Please give expert opinion.
Prakhar Kalani
(CA Final Student)
(38 Points)
Replied 20 July 2014
Hari
(CA)
(73 Points)
Replied 23 July 2014
In my opinion the contractor performing labour portion of contract will not amount to "supply of manpower service" since he retains the control over his workers.
Hence reverse charge provisons are not applicable and contractor will be liable to pay service tax.
CAclubindia
