Difference between works contract & manpower supply

Works contract should involve supply of materials during the job which is not present in your case.

You should treat this as Man power service and basis of charing the fee is not having any relevance !!!!

Thank u Mr.Suri Kota for ur reply. But that fertilizer manufacturing company doesn't give employer share of ESI & PF for our employees. We gave that from our hand and our employees are work under our control & supervision. There is no employer & employee relationship between our employees & that company. After completion of finished goods of fertilizer, we bagging, loading & dispatching that fertilizer to the customers of that company (we are the only responsible for the all work we do) and received payment for the work we did on the basis of price per metric ton. so how can it be just a manpower supply. I think manpower supply is just of supply labours to the work and then have no responsibility. pls clarify this. Thank uThank u Mr.Suri Kota for ur reply. But that fertilizer manufacturing company doesn't give employer share of ESI & PF for our employees. We gave that from our hand and our employees are work under our control & supervision. There is no employer & employee relationship between our employees & that company. After completion of finished goods of fertilizer, we bagging, loading & dispatching that fertilizer to the customers of that company (we are the only responsible for the all work we do) and received payment for the work we did on the basis of price per metric ton. so how can it be just a manpower supply. I think manpower supply is just of supply labours to the work and then have no responsibility. pls clarify this. Thank u

Your company will be involved only for bagging the material and it's loading since there is no question of involved in production of the fertilizers.  Your company will be raised bill to the manufacturing company for your service charges i.e. bagging and loading and claim the 100% service tax on your service amount which will be remitted to the department.

example:

Your basic service bill               Rs. 5,00,000

Add Service Tax % 14.5%         Rs.    72,500

Total bill value                           Rs. 5,72,500

You have to collect Rs. 5,72,500/- from the manufacturing company and remit Rs. 72,500/- to the department.

Thank u sir. May u clarify under which head i have to collect my service tax? whether supply of manpower or works contract?

In Ritesh Enterprises case the Hon'ble CESTAT ordered that work carried out on lump sum basis does not fall under the head of manpower supply.

Since the Service Provider by you is of "Packing 7 Loading", the same can be classified as

(i) Packaging Service; or

ii) Business Auxiliary service

The service tax is to be paid on the gross amount charged for the service, no abatement.

The service tax payable will be

Service Tax - 14%

Swatch Bharat Cess - 0.5%

i want know the applicablity of RCM

supply of manpower service it is.