Service Tax on casual labour charges

If casual labour is engaged by the company to do some repairing/cleaning jobs, the is service tax applicable on that amount
Replies (1)
  • Direct Hiring: If you pay casual labourers directly as your own temporary workers, GST generally does not apply.

  • Contractor Hiring: If you use a third-party agency or contractor to supply labour, the service is almost certainly taxable at 18%.

  • Compliance: Always verify if your contractor is GST-registered. If they are not, consult your tax advisor to determine if you are liable to pay tax under the Reverse Charge Mechanism (RCM).

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