LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Service tax applicable or not????

Pawan Bhutani (CA ) (63 Points)

31 July 2013

Whether Service tax applicble on labour contractor or not. And if applicable than what abatement rate?????

Reply
Follow
Share

2 Replies

CA. Kuldeep Singhi (Entrepreneur) (424 Points)
Replied 01 August 2013

Yes, Service tax is applicable on labour contractor i.e. Man Power Supplier. In this case 25% ST is paid by Labour Contractor & 75% is paid by Service Receiver.

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 01 August 2013

This service is coming under reverse charge mechanism and hence service provider, individual, huf, firm has to pay 25% on the value of the bill and 75% by the service receiver (business entity body corporate)