TaxTMI 
TaxTMI 
i am an individual small manufacturer out sourcing 6 labours from a labour contracter (individual) What is ST law applied
labour contract
15 Oct 2014 
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Service tax reverse charge: manufacturer may face liability if outsourced labour contractor exceeds turnover threshold under notification guidance.
Liability for service tax on outsourced labour hinges on the contractor's turnover: if the contractor qualifies as a small taxpayer below the turnover threshold, no service tax is payable; if the contractor exceeds the threshold, the contractor is liable on an apportioned taxable value and the principal manufacturer may incur a corresponding obligation under the reverse charge mechanism as set out in the cited notification. (AI Summary)
Liability for service tax on outsourced labour hinges on the contractor's turnover: if the contractor qualifies as a small taxpayer below the turnover threshold, no service tax is payable; if the contractor exceeds the threshold, the contractor is liable on an apportioned taxable value and the principal manufacturer may incur a corresponding obligation under the reverse charge mechanism as set out in the cited notification. (AI Summary)