Levy of service tax on labour contractor

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..... 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 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 ser .....

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..... vice 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 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 c .....

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..... ontractors 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, 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 su .....

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..... pply 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 arrange 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 powe .....

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..... r supply. Thanks in advance Ritesh khurana - Levy of service tax on labour contractor - Query Started By: - Sounik Mukherjee Dated:- 26-7-2008 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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