An Electricity Company has given a Contract for Shifting of Meters outside consumer permises of 2 Villages to an Electrical Contractor. 100% material is supplied by Electricity Co. & Contractor has employed its labour to complete the work.The Contract was completed before 01/07/2012 but bill was raised in sept,2012,now my question is
i)is it contract for supply of manpower?
ii)is reverse charge applicable ?
according to me it is work contract service.reverse charge mechanism is applicable to it.
50% s.t is payable by service provider
50% s.t is payable by service receiver.
still i am not sure.you can ask expert.
isn't it pure labour contract?
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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