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Work assigned to contractor on piece rate

Service Tax - Started By: - Narendra Soni - Dated:- 15-11-2015 Last Replied Date:- 30-11-2015 - Dear ExpertsKindly suggest - work done by contract workers in factory of manufacturer on piece rate is taxable under service tax or not.Regards. - Reply By Ganeshan Kalyani - The Reply = Whether the contract worker are engaged by a manpower contractor ?. if yes, service tax is payable by manufacturer under reverse charge mechanism. In my view piece rate work is not criteria for service tax, but the ar .....

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hen it forms an arrangement of labour job. But since the work is performed at manufacturer factory then it would be presumed that the contractor has supplied manpower and in such cases service tax is liable under reverse charge. - Reply By Narendra Soni - The Reply = Thanks Mr.Kalyani,Please suggest whether service tax will be applicable If the worker does work under supervision and control of contractor with in the factory of manufacturer -then it forms an arrangement of labour job.If yes, in w .....

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rocess amounts to manufacture then service is not leviable. It is also true that processing or manufacturing activity is different and supply of manpower for the purpose of manufacturing is different. The process may be exempt from service tax as it amounts to manufacture but supply of manpower remains taxable. Your interpretation and correlation is not right. This is my view. - Reply By Narendra Soni - The Reply = Dear Kalyani,If contractor carried out job by using machines of manufacturer in m .....

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recent post that the arrangement is a job work arrangement and the contractor carries out manufacturing activity as per manufacturer s instructions in his own manufacturing facility. thus in my view if the activity of processing amounts to manufacture then service tax will not apply on the processing charges paid by manufacturer to the job worker but instead Excise duty will be applicable and vice versa. - Reply By CA.Tarun Agarwalla - The Reply = Dear SirI would be visiting the taxability and l .....

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