our new laboure supplier providing me a 8 nos. laboures on contract period for which he is charging a bill. but no service tax included or shown in the bill can anybody tell me what is the rules for service tax regarding laboure supplier and and what is the limit for laboure supply to issue a bill showing service tax.
Any type of supply of labour is covered under Manpower Recruitment or Supply Agency's Service [Section 65 (105) (k) of Finance Act, 1994 as amended].
There may be two cases:
1. The most common one is that the supplier of labour is claiming exemption as Small Service Provider, where he is not required to charge & pay Service Tax upto the gross receipt of Rs.10 lakhs in a year. If that is the case, question of charging service tax won't come in your case.
2. If there exists a direct employer - employee relation between you & the labourers working for you.
But as the supplier of labour is charging a bill, it seems that case two is not applicable in your case. Please enquire the labour supplier on case one.
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