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TMI BlogService Tax on Pure labour without any contractor.X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, Whether Service tax attracts on pure labour (daily wages labour) which is hired without any contractor. kindly reply in detail. - Reply By ALOK SHARMA - The Reply = All members are request to give their opinion. Specially Kasturi Sethi Sir, please reply - Reply By YAGAY and SUN - The Reply = In our view it is payable since the definition of manpower supply had been amended on this matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r long back. - Reply By ALOK SHARMA - The Reply = Any reference which clear the doubts on this issue, please give. - Reply By KASTURI SETHI - The Reply = Dear Querist, We are talking of pre-GST era. For leviability of Service Tax, there were three parameters and these were as follows: (i) There must be a taxable Service Provider. (ii) There mus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be a service receiver. (iii) There must be consideration. (may be in some guise. That also falls in the definition of 'consideration'. As per query, pure labour has been hired. Who has hired the labour is liable to pay ST ? You may not call him a 'contractor'. Since the activity (pure labour), conforms to all the above parameters, it is liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to ST. we are not to go by the nomenclature of 'contractor'. I also welcome the views of other experts on this issue. - Reply By YAGAY and SUN - The Reply = Rule 2(g) of Service Tax Rules, 1994 defines: Supply of manpower temorarily or otherwise to another per to under under his superintendence of control. - Reply By ALOK SHARMA - The Reply = Sir, In my query, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it's clear that contractor has not hired labour through any contract, he has hired labour directly on daily wages worker without any contractor. So I don't think it will under the manpower supply proviso. - Reply By KASTURI SETHI - The Reply = The fact can be ascertained from the examination of statutory as well as non-statutory records of the party. - Reply By Rajagopalan Ranganathan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Sir, In my opinion the supplier of the labourers need not have entered into contract with any other contractor or the individual labourer. If he supplies man power for consideration then he is deemed to provide taxable service. Therefore you are liable to pay service tax under reverse charge mechanism since supply of labourer service is under RCM. Even issue of an invoice demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing consideration for the supply of service will be deemed as a contract. - Reply By KASTURI SETHI - The Reply = Invoice is a written contract. It has been held by Bombay High Court in 2007. - Reply By YAGAY and SUN - The Reply = In any case, ST is payable on such transactions under RCM. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = Shri Rengarajan's reply is very clear on the query ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . thank you sir - Reply By YAGAY and SUN - The Reply = We do endorse the views of our experts. - Reply By KASTURI SETHI - The Reply = Queries is lucky to have maximum opinions. Thus he be would be able to take a firm decision. - Reply By Himansu Sekhar - The Reply = Sl no 8 of notf 30/12 prescribes supply of manpower in form.This condition is absent in case of direct hiring of labour. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No s.tax is leviable. - Reply By Himansu Sekhar - The Reply = Again the recipient needs to be a body corporate for rcm - Service Tax on Pure labour without any contractor. - Query Started By: - ALOK SHARMA Dated:- 18-7-2018 Service Tax - Got 15 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmanagement - taxmanagementindia.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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