We have engaged a contractor for unloading of our raw material at our RM Warehouse. He has paid on per ton basis for the unloading. He need to engage relevant number of manpower to unload the material.
Is this attract service tax. If yes will it covered under manpower contract or cargo handling of service tax.
Another contractor was engaged who takes the load from RM-Warehouse to our factory to unload the material. He too has to employ the relevant number of manpower to do this.
The second contractor is getting the rent for his vehicle apart from loading and unloading charges. He also getting his payment on per ton.
Negative List u/s 66D(p)(i) of the Act –
66(D)(i) (P) of the list states that other than Transport Agency and Courier, small truck operators are exempt from service tax.
Can the above two contractors fall under this category.
Or the first contractor will fall under manpower contract since he is not transporting goods on road but only unload the goods within the Warehouse.
If such is the case will it attract manpower contract and whether reverse charge mechanism applies.
Whether the second contractor exempts from payment of service tax under the negative list.
CAclubindia
