Bookmarks   Feedback   Annual Subscription   New User   Login  
Tax Management India .com   
   TMI - Tax Management India. Com   
CENVAT CREDIT    *    Duty drawback    *    MEIS procedure for export    *    After GST - Machinery booking on commission    *    New Issue / query = Export against the INR Purchase Order    *    Subcontract Manufacturing by 100% EOU for a Main contractor (Outside India) who is in contract with an Indian Brand Owner for supply of Ready Made garments    *    Where supply of goods without transfer to title has to be treated as service, whether on importation of such goods i.e. deemed services, customs duty and GST would be levied simultaneously?    *    First stage dealer    *    determination of assessable value for job work transaction    *    Cabinet approves Agreement and the Protocol between India and Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion    *    Appointment of Common Adjudicating Authority by DGRI    *    Boarding and Rummaging of vessels, aircrafts and vehicles    *    service tax payament-reg    *    Education Cess / Secondary & Higher Education Cess    *    Seeks to further amend Notification No. 96/2008-Customs dated 13.08.2008 so as to include 'Republic of Guinea-Bissau' in the list of countries eligible for preferential tariff under the said notification    *    Amends Notification No.22/2003-Central Excise dated 31.3.2003    *    Regarding Filing of returns through digital signature    *    Union Finance Minister Shri Arun Jaitley to inaugurate the Conference on “International Arbitration in BRICS: Challenges, Opportunities and Road ahead” on August 27, 2016 in the national capital;    *    TAXABLE EVENT UNDER GST    *    ABCD of MSME Credit (Shri S. S. Mundra, Deputy Governor – August 23, 2016 – at the 2nd CII National Conference on MSME Funding held in New Delhi)
Discussions Forum
Home Forum Service Tax
← Previous Next →

Service Tax on Labour Charge - Service Tax

#1 Issue Id: - 105733
Dated: 29-5-2013
By:- Gagan B
Service Tax on Labour Charge

  • Forum

Dear All,

We have opted a security Agency for manpower. I want to understand that, "Is service Tax applicable on whole amount" i.e Manpower wage + service charge 10% and on that service Tax OR "Manpower Wage different and service tax only on service charge which I pay"

Exp : Manpower Wage Rs.100 +10(service Charge) = 110 +12.36% S.Tax = 123.60/-


Manpower Wage Rs. 100, Rs.10 Service Charge +12.36% Tax =11.24 = 111.24/-


Ideally, Service tax can  be applicable only on service charge !



which one is correct pls guide







Post Reply

Posts / Replies


#2 Dated: 29-5-2013
By:- Pradeep Khatri

Service Tax will be charged on the gross value of the services provided.  Further, refer Notification No. 30/2012-ST 45/2012-ST and 46/2012-ST in this regard.

#3 Dated: 29-5-2013

Dear Mr. Gagan 

So far as i have understood your question my reply is as below:-

The valuation of services rendered under Manpower Services shall be determined as per provisions of section 67 read along with Service Tax (Determination of Valuation) Rules, 2006. So, far as it is related to Manpower Supply, no specific provision for determination of taxable value has been provided. Hence the Taxable Value in my opinion will be total amount of consideration.

Hence, in my opinion it will be (Wages + Service Charge) X 112.36%= Invoice Value.

Rs. 100+ Rs. 10= Rs.110 + 12.36% of 110.00= 123.60


Post Reply


← Previous Next →
what is new what is new

Advanced Search

Latest Updates




More Options


|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version