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Labour contract

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..... Labour contract
Query (Issue) Started By: - Samik Chaudhuri Dated:- 23-7-2016 Last Reply Date:- 25-7-2016 Service Tax
Got 9 Replies
Service Tax
Sir Our manufacturing is going to engage Labour Contractor for supplying labour. I would like to know under RCM whether our company is bound to pay 15% of 75% or 15% of 100%. Please advice me. With thanks Samik Chaudhuri. Reply By SHIVKUM .....

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..... AR SHARMA: The Reply: Mr Samik You have to pay15% of 100% under RCM. Reply By KASTURI SETHI: The Reply: Sh.Shivkumar Sharma Ji, I want to know 15 % of 100% under which notification ?? There is every possibility that I may have missed some notification pl. Thank you. Reply By SHIVKUMAR SHARMA: The Reply: Respected kasturi Sir Pls.Refer Notification No.30/2012 ST amended vide notification N .....

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..... o.07/2015 ST dtd.01/03/2015. Reply By KASTURI SETHI: The Reply: Sh.Shivkumar Sharma Ji, As per Notification No.7/15-ST dated 1.3.15 (Effective from 1.4.15) 100 % ST is to be paid by Service Receiver. There is no question of 15 % of 100. Do you agree ? Pl. comment upon. Reply By SHIVKUMAR SHARMA: The Reply: Respected Sir The Query of Shri Samik Chaudhary is as Under : Suppose Labour Charges .....

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..... is ₹ 100/- 15 % ST is to be Paid by them on ₹ 75 or ₹ 100 under RCM Earlier before 01/03/2015.in case of Manpower supply ST was paid by service provider on 25% of Labour bill & service receiver was paid ST on 75% of Labour bill. Now 100% service tax is to be paid by Service receiver only as per Not.No.07/2015. Reply By KASTURI SETHI: The Reply: Sh.Shivkumar Sharma Ji, Thank .....

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..... you. O.K. Sir. The querist was not aware of Notification No.7/15-ST. More than one and half year has elapsed and he was not aware of the amendment. Anyhow, situation is clear to me. Reply By Ganeshan Kalyani: The Reply: Nicely replied. Thanks. Reply By KASTURI SETHI: The Reply: Sh.Ganeshan Kalyani Ji, I should have grasped the query in the first instance though the querist has not written .....

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..... the word, 'Rate of ST'. It is failure on my part as I took considerable time to understand.!!! Reply By Ganeshan Kalyani: The Reply: Sir, with due respect to all, I would like to mention that the question should have been drafted with little clarity. The querist has written "15% of 100%", it should have been "15% of 100% of Value of Service ". Then it would have been .....

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..... transparent. Sometime it happens that what querist is willing to ask is not what exactly written in the query. Hence I would request all those who are posting queries should post queries clear and complete. Thanks.
Discussion Forum - Knowledge Sharing .....

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