applicability of service tax (urgent), Service Tax

[rakshit mehta]

a labour contractor who has an permanent staff of 150 people whom he pay a fix amount of salary per month. he receives payment from other contractor for supply of labours on daily basis. is he liable to register under service tax act and charge service tax for his services of pure labour supply. if yes, what are penalty for not registering under services tax once it crosses threshold limit of 10lakh. what are the service tax code applicable for his.

Posts / Replies

[Himansu Sha]

Yes. You need to pay Stax if you are providing such services. If you provide services to a company, then the company will pay service tax, not you. For non payment of s.tax you will have to pay interest and penalty. For non registration penalty upto red 5000/. But for non payment of Stax, interest will be substantial. If your turnover is less than 60 lakhs, previous year, there will be a reduction of three percent of interest.