Dear all,
We are manufacturing unit and we had engaged many labor contractors who is doing business of labor supply to the company in return we pay them 15% commission on net salary plus 10.30% service tax, they all are registered with service tax authorities but nobody crosses the limit of Rs. 10.00 Lakhs (Exemption limit) my questions are
1) Whether it is discretionary on the part of the Labor contractor to pay service tax to the govt. when they are exempted from the service tax
2) Whether company can take some undertaking that they have not crossed the limit and therefore company will not pay them service tax amount
3) whether It is the duty of the company to pay them service tax and later on recover from them and deposit to governenment
4) Whether non payment of service tax by the suppliers will make company liable for the same i.e onus will also on company liable for defaults in depositing service tax amount on governement treasury
Kindly suggest.
Regards.
Rajesh Kotkar
CAclubindia
