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TMI BlogService tax on work carried out in factory by contract labourX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts. We are manufacture of Bag ,Yarn Fabric Manufacturer. In our factory different types of works like Packing,Inspection,Folding,Sorting,Loading,Unloading of Bags,yarn Fabric are carried out by labours of contractors.We pay them per KG/Meter/Bag. Kindly suggest is service tax is applicable on these activities. - Reply By Gorantla Bhaskar Rao - The Reply = Dear sir, Depending on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agreement entered by u with ur contractors, you have to raise a bill on your contractors showing the Service tax element and accordingly you have to deposit the same to Government. - Reply By Narendra Soni - The Reply = Dear Sir, If we show service tax amount in bill and pay to govt., then it means it is taxable. Our query is whether these activities are taxable under service tax or not. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clauses of agreement and invoicing depends upon taxablity or not. Agreement may be made on piece rate/per labour/per day/under supervision, these aspects are come if activities are taxable either reverse charge as manpower supply or under forward charge. Kindly suggest. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = In my view it comes under manpower supply and it is liable to be paid under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reverse Charge mechanism. - Reply By SHIVKUMAR SHARMA - The Reply = Dear Sir If you have make the payment to your contractor on perkg/mtr/bag then it is fall under Business auxiliary service or you make the payment per day per labour then it is fall under Manpower Recruitment supply (under reverse Charge) It is my opinion. SK Sharma - Reply By Gorantla Bhaskar Rao - The Reply = Dear s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir, In my view, if the contractor is providing man power to you for undertaking the works mentioned by you, then it comes under supply of man power services and service tax is payable under reverse charge mechanism and service receiver is liable to pay 100% service tax as per the Notification No.30/2012 ST dated 20.6.2012 read with amended Notification 7/2015-ST Dt.1.3.2015 which is effecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve from 1.4.2015. If your contractors are proprietory ship concern/partnership firm, then being a body corporate, you are liable to pay service tax 100%. If your contractors also happened to be body corporates, then no reverse charge mechanism applies and service provider has to pay 100% service tax. - Reply By Narendra Soni - The Reply = Dear experts Thanks for valuable suggestions. Please n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ote that the work is carried out on piece rate/limp sum/per kg/per Bag under supervision control of contratcor hence it will not fall under Manpower supply. But kindly suggest if it can be fall in other taxable service or it is not taxable. - Reply By Ganeshan Kalyani - The Reply = Service tax is applicable under manpower supply service . If the condition of reverse charge mechanism is fulfil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led then service tax is payable by the service recipient. Otherwise service provider will be liable to pay the tax. - Reply By PGK NAIR - The Reply = It is simply Contract Manufacture by Sub Contractors. The payment for work done is on a Piece Rate system. The commodity seems to be Excisable . Hence it is manufacture outside the purview of Service Tax. It is neither Business Auxiliary Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice but part of the manufacturing process of the mentioned commodity. PGK Nair - Service tax on work carried out in factory by contract labour - Query Started By: - Narendra Soni Dated:- 25-11-2016 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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