Whether service tax is payable on labour contractors as on date.please explain the relevant provisions.
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Service tax is payable on labour contract and direct and indirect supply of manpower under manpower recruitment services.
This, though seems to be a simple problem, needs a closer look into the nature of job undertaken by the labour contractor.
A) If the contractor supplys labourers at the clients place and does not take part in the construction, then the same services are liable to tax under the category of manpower recruitment or supply.
B) However if he undertakes the construction also then ST is payable under the category of Comeercial Construction/ Complex construction, depending upon the nature of contract.
However there can be no doubts that Service Tax is payable.