Service tax applicability, Service Tax

[ganeshan kalyani]

Dear Sir,

I would like to discuss on determining category of services. A service provider who will take care of gardening, factory upkeep, and would help in production process. Does these the arrangement will be termed as 'Supply of manpower' and secondly whether the billing structured will be done as lumpsum bill or per man day cost.

kindly suggest.

regards,

ganeshan

Posts / Replies

[Ashish Chaudhary]

If superintendence and control with service receiver, would be covered by "Manpower Supply Service". Nature of billing though indicative but not conclusive of nature of service. If billed on per man day basis, likely to be covered by manpower supply.

[Madhukar N Hiregange]

The law prescribes that the nature of the transaction is to be determined. Here if the responsibility of garden and factory is clearly the liability of the service provider and the agreement has penalties for not fulfilling the requirements then it would NOT be supply of manpower.

If billed in man hours - by itself doe not mean classification as manpower services. The consideration cannot determine the classification. However preferable that payment is also made job wise to avoid disputes.