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Manpower services local authorities

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CA NAMRATA KAYARWAR

186 Points Posted on 03 July 2023

A registered taxpayer engaged in construction business, provides services to local authorities for manpower. The local authority has made agreement with the taxpayer for providing 8 semi skilled, unskilled worker. local authority will pay basic wages+PF+10% commission to taxpayer. and taxpayer will pay to workers.

whether this service cover under exemption services provided to govt bodies/local authorities?

Replies (8)

Quick Summary

This discussion examines the GST implications for a construction business providing manpower services to local authorities. The core question is whether these services, where the authority pays wages plus a commission/margin to the taxpayer, qualify for GST exemption for government bodies. While initial thoughts suggested it might not be exempt due to the commission, the consensus leans towards potential exemption, with a link provided for further reference and a suggestion to seek an Advance Ruling.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 03 July 2023

As per You If its through commission basis then it's not exempt.

CA NAMRATA KAYARWAR

186 Points Posted on 03 July 2023

Actually it is their margin not commission. they quote rate considering 10% margin.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 03 July 2023

Yes, I know.

So, I will try to get it from You.
As per Your reply this man power supply service cover under exemption services provided to govt bodies/local authorities.