applicability of service 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 by paying commission for supplying the labours..For this we are paying Service Tax @ 12.36% on total wage of ₹ 6700.00. My doubt is is the Service Tax applicable on wage of ₹ 6700.00 or the commission the labour contractor charges me for supplying labour.kindly clarify

.chakravarthy.

[YAGAY andSUN]

Dear Sid,

Service Tax would be paid on gross amount of the bill which is being duly raised by you provided you are a LTD or Pvt Ltd company and providing services to Ltd or Pvt Limited companies otherwise partial reverse charge would be leviable vide notification no 30/2012-ST.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)