suggestion on service tax on purely labour contract at airport

[sushil kumar]

i am working in pvt ltd. company as Accounts Manager, please help me that whether   service tax  is applicable on labour work providing (glass fixing,installation) as labour contractor for   at Airport  and we have received the  labour contract  from Parth facade  pvt ltd (Main contractor )  for the f.y.2011-12  whether  Service tax exempted or not ...? 

or it will under manpower supply 

 we have not taken the service tax registration  because we are under imprecision that our service is exempted 

  if service tax is applicable then to what extent it is applicable (i.e)

1.whether interest is applicable .....?

2.whether penalty is applicable .......?

3.whether there is penalty for non filling for service tax return from (1.4.11 to till date)......?

4.have we get any relaxation from service tax department if we pay the service tax stating the real fact ....? 

4.have any possibility that the liability transferred to the main contractor .......?

[YAGAY andSUN]

First of all if you have crossed the threshold limit then you were under obligation to ge the registration certificate from the service tax department.

Being a sub contractor you were also liable to charge the service tax while providing output services to main contractor.

If the main contractor pay the tax on your behalf then you are not liable to pay the tax.

It is advisable that you must seek Registration under the Finance Act, 1994 and pay your all statutory dues without any further delay.

AI Summary

Service tax on pure labour contracts: subcontractors must register and pay unless main contractor pays on their behalf. If taxable receipts exceed the threshold, the labour subcontractor must obtain service tax registration and is liable to charge and remit service tax on services supplied to the main contractor; if the main contractor pays tax on the subcontractor's behalf, the subcontractor is not liable for that payment. The record advises prompt registration under the Finance Act, 1994 and regularising past statutory dues, while noting possible exposure to interest, penalties, and non filing consequences without specifying relief.