Works contract and supply of manpower labour?

Dear friends,

My queries are relating to Supply of Manpower and Works Contract which are as follows-

1) If a company provides professional services to other company in the form of sending its Article Trainees on Audit to other company,will this be called as 'Supply of man- power' or simply a 'labour contract'?

2) In works contract, how does the valuation of Service Tax carried out? If possible,can you explain with an example.

Thanks in advance.

Replies (3)

1) providing artiles for audit is only professional services. it is not labour contract. Because in audit we don't work under the control of a company of which we are doing audit. We are controlled by our professional company only.

2) in case of work contract on reverse charge 50% service tax is paid either. see notification no. 30/2012-S.T.

Dear Sir, 

I agree with what you have said but one exception to the first point.

"providing artiles for audit is only professional services. it is not labour contract. Because in audit we don't work under the control of a company of which we are doing audit. We are controlled by our professional company only."

The work is controlled by the company where we conduct our audit and not by our company (if med-sized and small firms).

In that case what do you call it? Supply of labour or rendering of professional services?



 

First thing, artiles are not labourers. If any ca firm keeps their staff for audit at client place, it is not kind of labour work. In labour contract we supply labours for labour activity.

second thing being artile they carry auditing work as per their professional senior guidance not as per the company guidance of which they do audit. if you are an article of any ca firm then simply u report to your employer about work done at client place not to your client. yours firm only issue report based on work conducted. & auditng is a kind of professional service.

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