labour contract

[mali chand agarwala]

i am an individual small manufacturer out sourcing 6 labours from a labour contracter (individual) What is ST law applied

AI Summary

Small Manufacturers: Service Tax Liability Clarified Under Reverse Charge Mechanism, Focus on Business Operations Instead An individual small manufacturer outsourcing six laborers from a contractor inquired about applicable service tax laws. One respondent explained that if the contractor's turnover is below 10 lakhs, no service tax is due. If it exceeds 10 lakhs, the contractor pays service tax on 25% of the taxable value, and the manufacturer pays on 75%, as per Notification No. 30/2012-ST. Another respondent simplified this, stating that under the reverse charge mechanism, individual small manufacturers have no service tax liability and advised focusing on business operations instead of tax complexities.