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Works contract and manpower supply

Sanjeev Saini (Manager) (45 Points)

14 April 2016

Sirs, Please Clarify....Contracter (construction) is registered in two categories .01. works contract 02. manpower supply.. Is Vat Applicable on manpower power supply if he is providing manpower supply for constructing the building only nothing else and charging per man per rate. is vat applicable on him.. Please suggest.. Regards Sanjeev Saini

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5 Replies

AMBUJ SHARMA (CHARTERED ACCOUNTANT) (243 Points)
Replied 14 April 2016

since your contractor is providing man power only, he is liable to charge service tax only. no vat is leviable.

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Sanjeev Saini (Manager) (45 Points)
Replied 16 April 2016

Thanks Sir,

Virendra Chauhan (Manager Accounts) (121 Points)
Replied 18 May 2016

Dear Sir, Can you plz clarify difference between Manpower Supply and work contract. Virendra Chauhan

Sanjeev Saini (Manager) (45 Points)
Replied 18 May 2016

Manpower supply means supply of manpower , temporarily or otherwise, to another person to work under his ( service receiver-employer) or control but wages of man power will be paid the the service provider.

In simple words Work contract is joint contract in which service is provided and some material is also transfer as sale. It AMC , Commission, erection and installation of plant, machinery, equipment, structure ; construction of buildings; turnkey projects; maintenance services -AMC contracts; Job work contracts.

The Basic Difference between Man power Supply and Works Contract is : In Works Contract Man power supply imay be incluede as per the contract for carrying out the job/contract for specific but if providing in Man Power only can not be Works Contract as some Trasnfer of goods is inlcuded in that

Sanjeev Saini (Manager) (45 Points)
Replied 18 May 2016

Manpower supply means supply of manpower , temporarily or otherwise, to another person to work under his ( service receiver-employer) or control but wages of man power will be paid the the service provider. In simple words Work contract is joint contract in which service is provided and some material is also transfer as sale. Like.. AMC , Commission, erection and installation of plant, machinery, equipment, structure ; construction of buildings; turnkey projects; maintenance services -AMC contracts; Job work contracts. The Basic Difference between Man power Supply and Works Contract is : In Works Contract Man power supply may be incluede as per the contract for carrying out the job/contract for specific but providing Man Power only can not be Works Contract as some Trasnfer of goods is NOT inlcuded in that.

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