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.

AI Summary

Service Tax on Labor Contractor: Applicable on Gross Bill for Companies; Partial Reverse Charge per Notification 30/2012-ST for Others. /2012ST A user inquired about the applicability of service tax on wages paid to a labor contractor. They wanted to know if the tax should be applied to the total wage amount of 6,700 or just the commission charged by the contractor. The response clarified that service tax is applicable on the gross amount of the bill if the user is a limited or private limited company providing services to similar entities. Otherwise, a partial reverse charge applies according to notification no 30/2012-ST.