Service tax- man power supply under reverse charge mechanism

Recently while auditing a company i came across with a contract for housekeeping & cleaning services, here the 4 workers were provided by the contractor, & on the basis of attendance of the workers the monthly bill of the contractor was made. I was not able to find a written contract for the same, so i was not able to know the true facts.

I am pretty sure that the above contract would definitely fall under the definition of service, but my confusion lies in whether such a contract would be covered under man power supply contract(which is covered under reverse charge).
Can somebody suggest me the whether the case would be covered under reverse charge mech.

Replies (4)

Hey, if the invoice raised by the contractor contains details of each individual workers based on their attendance details then this is a service falling under reverse charge. But reverse charge will be applicable only if the service provider is an individual and the service receiver is a company.

This may fall under the descripttion of 'Cleaning Activity' as this is the most specific descripttion of the service. [Section 66F(2)] Rules of Interpretation.

 

Even in Security Service, many times, billing is done on man-hour/day basis, but the same is not manpower supply, but security service.

“Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’
[Rule 2(g) of Service Tax Rules, inserted w.e.f. 1-7-2012].
Cleaning service, piece basis or job basis contract can be ‘manpower supply service’ only if the labour work under superintendence or control of Principal Employer and in such cases reverse charge will be applicable.

 

Sir,

I want to know Contractor had charged uniform& saftey shoes charges from us whether it will be come under scope of reverse charge mechanism.

please suggest for the same.

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