Work Contract

[sukhvinder singh]

Respected All,

 

Please explain me what is work contract with suitable exemple. i am not understand supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory;

Thanks

e.g. if a contractor is hired for supply of Laborer for executing any particular work say breaking of a platform, clearing the debris from the site etc. If the said contractor is an individual, HUF, is a proprietor firm, partnership firm or AOP whose location is within taxable territory is engaged with you who are a business entity registered as body corporate i.e. Pvt. Ltd. or Public Limited Co. also located in taxable territory then the Invoice paid are taxable. Hope this cleared your query

[sukhvinder singh]

Thanks

AI Summary

Supply of manpower as part of a works contract is taxable when provided to a corporate business within taxable territory.
Where an individual, Hindu Undivided Family, proprietor, partnership firm or association of persons located in the taxable territory supplies labour or manpower to a business entity registered as a body corporate also located in the taxable territory in execution of works, the receipts invoiced for that supply are taxable under the service tax regime.