Service tax on manufacture

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I am a manufacturer of tyres..i employ workers who are contract employees and not my company's employees.. Whether such service done by the contract employees attracts service tax?? If so,under what head will it be charged.?
Replies (10)
manpower recruitment services (reverse mechanism) as reciepent of service
The manufacturer will be paying excise duty on manufacture of such goods and will include such labour cost in the AV..will it not be covered under negative list u/s 66D(f)

its attract service tax  

To attract Service Tax there has to be a Service Provider,in the ppresent case the provider is missing.There is no supply of manpower by anybody RCM is not applicable,no liability of Service Tax.

in absence of service provider / contractor, the employees would be treated as principal's employees and all formalities are to be maintained with them at par with the regular employees, viz, ESIC, PF, Leave, Gratuity and other perks 

IF ANY SERVICE PROVIDER PUTTING BILL FOR MANPOWER SUPPLY THEN ONLY SERVICE TAX WILL BE PAYABLE ON SUCH CHARGEABILITY...........

 

 

My doubt is regarding the payment made by the manufacturer to the contract employees and not the payment made to the contractor

That won't attact service tax..........

Under what clause,it is exempt??
where the employee / employer relation is established, NO service tax, but in absence of such relation, mere talking that these are contract worker, then there must be a contractor, to establish the relation of workers with the contractor, and not with the principal.


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