applicability of central excise tax.

[sid chakravarthy]

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.

AI Summary

Clarification Sought on Excise Tax Applicability for Outsourced Labor Wages: Entire Wage vs. Contractor Commission A user inquired about the applicability of central excise tax on wages paid to outsourced labor through a third-party contractor, questioning whether the tax should apply to the entire wage of 6,700 or just the commission charged by the contractor. The reply indicated that the question had already been addressed, without providing further details.