llllVICTORllll (Internal Auditor) (511 Points)
21 August 2012Hi My question for today is
If a Company engages Outside agency in its in house production facility, which includes supply of required manpower for such production or packing task.
Billing is done based on production completed, i.e to say rate/Kg or Rate/Unit basis(not as no. of people employed for said task)
So, Does the engagement come under Manpower supply, business support service?
please Answer with reasoning
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 21 August 2012
Explanation for supply of manpower given under notification No. 36/2012 dated 20th Jun'12 is - "Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control
Going by above explantion i belive it is covered under "Manpower supply"
Regards
Dayananda
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 21 August 2012
Hello Mr. Dayanand
Yeah even i read that and was coming to conclusion, but the thing that puzzles me is when the billing is for per product or per unit valuation,
could we stand with point that, it is just a contract(with contractor) to provide us with material or do a production activity on behalf of us, just because their labourers are working at our premises doesnot mean it becomes a Man power supply as they are still at command with the contractor, and contractor is liable for the work done by the people he has supplied
Being so, can we contend that it is business auxilary service than a Manpower supply
It is important because Manpower supply is covering under Partial reverse charge but business auxilary is not
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 22 August 2012
I suggest to look into the contract entered between the 2 parties. Whether it is for manpower supply to work at the premisess of the manufacurer or it is for producing of goods on behalf of manufacturer.
In the latter case it will be businseess aux.....in former it will be supply of manpower...
Regards
Dayananda
CAclubindia
