leviability of service tax - Commission on Contract labour

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..... if i m providing contract labour to companies on a monthly charge of rs.5000/- my commission is 10%i.e.500/- now whether service tax is chargeable on rs.500/- or 5500/-. if service tax charge on rs.5500/-than under which head, it is taxable. - Reply By Paramjit - The Reply = It is not clarified that whether labour supplied by you is skilled/unskilled labour only or it is Security Man. - Reply B .....

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..... y S Gupta - The Reply = Service tax is payable on gross amount charged agaist the taxable services provided. In your case gross amount is Rs. 5500/-/ Therefore service tax is chargeable on Rs. 5500/-. - Reply By preeti - The Reply = Only on Rs 500 u need to provide for service tax but in the bill it should be evident from documents that 5000 u r reeving for labour supply and paying to labour.See n .....

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..... otification 12/03 - Reply By Rakesh Arora - The Reply = Till the time you yourself are receiving the total amount of Rs.5500, S.Tax is chargeable on the whole amount. However if you receive commission Rs. 500 and manage to get Rs.5000 straight to the labour, S.Tax is chargeable on the amount of commission received by you i.e. on Rs.500/-. - Reply By Brijesh C Verma - The Reply = Section 67 of t .....

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..... he Finance Act 1994 specifically states that service tax shall be charged on the 'Gross Amount Charged by the Service Provider'. There cannot be any doubt that the gross amount charged by you would not include 'the amount of Rs. 5,000, subsequently paid by you '. In my opinion therefore, tax is required to be paid on the full amount. This tax is required to be paid under the category 'Manpower R .....

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..... ecruitment or Supply Agency's Services'. - leviability of service tax - Commission on Contract labour - Query Started By: - nawal Dated:- 8-1-2006 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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