Category - Labour supply, Service Tax

[sunil mehta]

A proprietory firm supplies labourers to a developer for civil construction work relating to resi./comm.activities. Query:(a)whether the above services will fall under "construction of...." or "Manpower recruitment....."? The proprietoir raises the bill as follows: Unskilled workers.....15000/ Supervisors..... 5000/ Management chgs........4000/(20% of 20000) Service tax @12.24%... 2938/ Total.................26938/ (b)Whether above billing is correct? Thanking you,

Posts / Replies

[Surender Gupta]

Apparently the service is falling in the category of "Manpower recruitment service. However, details analysis of contract terms and circumstances would guide us the correct situation.

[Madhukar N Hiregange]

This is clearly a manpower supply and not a construction activity since the responsibility of construction is with the customer. The method of raising bill is propeor excpe tthat the ST and EC should be disclosed separately.