st reverse charge on pure labour charges

[kannugatta prasanna]

Dear experts

ours is pvt ltd., company, recently we engaged a labour contractor for removing & fixing of asbestos sheets for our factory  material supplied by the us.we would like to know whether RC service tax  is applicable on labour work provided  by individual  labour contractor

shaku

[YAGAY andSUN]

Dear Kannugatta,

"Supply of manpower" means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’ [Rule 2(g) of Service Tax Rules, inserted w.e.f. 1-7-2012].

¨ Security service, cleaning service, piece basis or job basis contract can be ‘manpower supply service’ only if the labour work under superintendence or control of Principal Employer.

This is for your kind information.

Team YAGAY & SUN

[kannugatta prasanna]

thank u for ur opinion

sir, I would like to know what kind of superintendence or control of Principal Employer. in removing & refixing of the asbestos sheets for roof of factory building?

AI Summary

Supply of manpower: principal's superintendence determines whether labour contractor services qualify for manpower supply tax treatment. Whether reverse charge applies turns on whether the contractor's personnel constitute a supply of manpower, defined as provision of manpower to work under the recipient's superintendence or control. Security, cleaning, piece-rate or job-basis contracts are treated as manpower supply only if the labour works under the principal employer's superintendence or control; the degree of that superintendence is the decisive factual test.