applicability of central excise tax.

[Guest]

sir,we are engaging no of labors on outsourcing basis @Rs 6700.00 per month to third party labour contractor on tender basis.For this we are paying central excise tax @ 12.36% on total wage of ₹ 6700.00. My doubt is is the CST applicable on wage of ₹ 6700.00 or the commission the labour contractor charges me for supplying labour.kindly clarify.chakravarthy.

[YAGAY and SUN]

Already replied.

AI Summary

Central excise tax applicability questioned as to whether tax base is contractor wages or contractor's commission. Query asks whether central excise tax should be levied on the full monthly wages paid to outsourced labour or on the labour contractor's commission for supplying labour; the requester states they are currently paying central excise on the total wage and notes a reply was already provided but does not record its content.