TMI BlogService Tax on Labour ChargesX X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Seniors I have a query related service tax. Kindly help. Brief History: We being a Limited Company Received a Bill of Installation of Batteries for Labour charges only. Bill dates back to Feb 2016. Contractor is a partnership firm and has not charged service tax on the bill. query: whether service tax be applicable under Reverse Charge and if yes how much? Kindly help. - Reply By SH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IVKUMAR SHARMA - The Reply = Please refer issue Id 110675 - Reply By MARIAPPAN GOVINDARAJAN - The Reply = If it is a manpower supply service tax is payable on reverse charge mechanism @ 100%. - Reply By CA Surender Gupta - The Reply = As long as the services are to be classified as Manpower supply, I do fully agree with the views that reverse charge is applicable @100% of service tax liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. But whether the activity of installation of Batteries would amount to Manpower supply services? Whether mere by stating that charges paid for labor towards installation of Batteries would amount to Manpower supply services? Assuming that it is a stand alone activity, the answer to the both questions are negative., and therefore, I am of the view that, it will not be a case of manpower supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service and hence provisions of reverse charge will not be applicable in this case. - Reply By Ganeshan Kalyani - The Reply = The Labour charges for installation of batteries does not amount to supply of manpower. The nature of service is doing installation job and not supply of Labour to receiver of service to work under his supervision and control. Since the case is not that of supply of Labou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r it does not fall under reverse charge. The service provider is supposed to charge full service tax on bill provided his turnover is above SSI limit. Thanks. - Reply By Ganeshan Kalyani - The Reply = To add to my previous reply. The description on invoice matters a lot. The exact nature of service is scrutinised later but first the attention of auditor is upon the type of service written on in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voice. This if it is pure Labour charge then insist the service provider to write it appropriately. This avoids lot of issue which may creep up later. Thanks. - Reply By YAGAY AND SUN - The Reply = such service may come under purview of Commissioning and installation agency services. - Reply By Harpreet Singh - The Reply = Thanks for replying. Vendor has mentioned Labour Charges on the bill. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Does the intention of the contractee matters? what if work has been done on the specifications of contractee? - Reply By Ganeshan Kalyani - The Reply = No there is no provision to clarify the intention. It simply states that if only Labour charges is included in the bill then service tax shall be under specific head. If both material and Labour then it will fall under works contract. - Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Tax on Labour Charges - Query Started By: - Harpreet Singh Dated:- 20-9-2016 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - 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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