Levy of service tax on labour contractor

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..... Levy of service tax on labour contractor
Query (Issue) Started By: - Sounik Mukherjee Dated:- 26-7-2008 Last Reply Date:- 12-10-2012 Service Tax
Got 4 Replies
Service Tax
A labour contractor cooperative has been agreed to supply man power as per requisition of principal employeer. Pricipal employeer will pay wages as per minimum wages Act of W Bengal and production linked incentive to .....

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..... labour contractor per employee. labour contractor will get 2.5% service charges on total wages paid for the month. in this perticular case whether labour contractor will be levied service tax? if yes why and which amout i.e. gross amount or service charges. Reply By V Ramanujam: The Reply: The service of this nature would fall under the category of 'Manpower recruitment and supply agency' which .....

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..... includes the service of supply of manpower, temporarily or otherwise. The levy would be applicable on the gross amount. Reply By Surender Gupta: The Reply: In general labor contractors are the actual employers and provide the labor on contract basis to the company. Therefore, you need to pay service tax gross amount including wages. However, if you satisfy that the you are acting as a pure agent, .....

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..... you need to pay service tax only on 2.5% received as service charges. Reply By DEBABRATA ROY: The Reply: Your case falls under the category of manpoower recruitment or supply agencies services an subjected to attract service tax on gross amount Reply By ritesh khurana: The Reply: Qurey If construction company appoint a small contractor for painiting or plastering etc and contractor him self arr .....

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..... ange labour : labour are under the supervision of contractor and principal has no supervision or control over the labor then still it covered under the man power supply. Thanks in advance Ritesh khurana
Discussion Forum - Knowledge Sharing .....

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