Service tax in case labour contractor

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an individual is labour contractor and do work with labour like making shad only (without material) of plant in manufacturing companies.... then i want to know any service tax applicability on contractor or company and where contractor will fall as per service tax law... please any expert help me.......

Replies (5)
Yes the above work is covered under MANPOWER SUPPLY SERVICE and service tax is applicable on above service.

Dear Deepak ji,

contractor has control on labour, company doesn't have any control on labour,,, then also it is covered under manpower suply or not ?

or covered any other service ?

contractor himself do work with the help of labour.

 

as per my opinoin where the contractor has direct control over labour and noth the service recepient than service tax liability would be that of the service tax provider and reverse charge mechanism would not be applicable, service provider is liable to pay service tax at full rate

Dude,

Control over the labour is irrelevant, the main point to classify under MANPOWER SUPPLY SERVICE is the contractor must be labour contractor.

If the labours worked under the superdence & control of the contractor then it's not fail under the scope of Manpower Supply Service, if labour contrctor billed under the basis of unit of work executed  by them i.e. Sq. Ft. or No's and the principle employer paid by him against the above work then his service fail under the Scope of Business Auxiliary Services and service tax chaged under this scope of service. no. reverse chage applicable in this case.


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