Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

Service tax on work carried out in factory by contract labour

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Dear Experts. We are manufacture of Bag ,Yarn Fabric Manufacturer. In our factory different types of works like Packing,Inspection,Folding,Sorting,Loading,Unloading of Bags,yarn Fabric are carried out by labours of contractors.We pay them per KG/Meter/Bag. Kindly suggest is service tax is applicable on these activities. - Reply By Gorantla Bhaskar Rao - The Reply = Dear sir, Depending on .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the agreement entered by u with ur contractors, you have to raise a bill on your contractors showing the Service tax element and accordingly you have to deposit the same to Government. - Reply By Narendra Soni - The Reply = Dear Sir, If we show service tax amount in bill and pay to govt., then it means it is taxable. Our query is whether these activities are taxable under service tax or not. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Clauses of agreement and invoicing depends upon taxablity or not. Agreement may be made on piece rate/per labour/per day/under supervision, these aspects are come if activities are taxable either reverse charge as manpower supply or under forward charge. Kindly suggest. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = In my view it comes under manpower supply and it is liable to be paid under .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Reverse Charge mechanism. - Reply By SHIVKUMAR SHARMA - The Reply = Dear Sir If you have make the payment to your contractor on perkg/mtr/bag then it is fall under Business auxiliary service or you make the payment per day per labour then it is fall under Manpower Recruitment supply (under reverse Charge) It is my opinion. SK Sharma - Reply By Gorantla Bhaskar Rao - The Reply = Dear s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ir, In my view, if the contractor is providing man power to you for undertaking the works mentioned by you, then it comes under supply of man power services and service tax is payable under reverse charge mechanism and service receiver is liable to pay 100% service tax as per the Notification No.30/2012 ST dated 20.6.2012 read with amended Notification 7/2015-ST Dt.1.3.2015 which is effecti .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ve from 1.4.2015. If your contractors are proprietory ship concern/partnership firm, then being a body corporate, you are liable to pay service tax 100%. If your contractors also happened to be body corporates, then no reverse charge mechanism applies and service provider has to pay 100% service tax. - Reply By Narendra Soni - The Reply = Dear experts Thanks for valuable suggestions. Please n .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ote that the work is carried out on piece rate/limp sum/per kg/per Bag under supervision control of contratcor hence it will not fall under Manpower supply. But kindly suggest if it can be fall in other taxable service or it is not taxable. - Reply By Ganeshan Kalyani - The Reply = Service tax is applicable under manpower supply service . If the condition of reverse charge mechanism is fulfil .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... led then service tax is payable by the service recipient. Otherwise service provider will be liable to pay the tax. - Reply By PGK NAIR - The Reply = It is simply Contract Manufacture by Sub Contractors. The payment for work done is on a Piece Rate system. The commodity seems to be Excisable . Hence it is manufacture outside the purview of Service Tax. It is neither Business Auxiliary Se .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rvice but part of the manufacturing process of the mentioned commodity. PGK Nair - Service tax on work carried out in factory by contract labour - Query Started By: - Narendra Soni Dated:- 25-11-2016 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanag .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates