Man power service

[S.C. WADHWA]

Dear Expert,

We are paying loading and unloading charges to our workers as well as outsider at our factory as well as at godown. We are not including this amount in GTA service while paying service tax.

Now my query is whether this amount fall under man power service and service tax to be paid under 100%reverse charge service. Please give your expert opinion.

Regards,

WADHWA

WADHWA

.

[Ganeshan Kalyani]

you would be paying salary to your worker then loading unloading would form part of salary. secondly when you pay loading unloading to outsider then that would be in the form of manpower supply and in that case loading unloading paid would form part of manpower charges. If you give some more details we can give you suitable reply.

[Dheeraj Deshmukh]

DEAR SIR

I HAVE WORKING PARTNERSHIP FIRM PLEASE TELL ME WHAT SERVICES TAX RMC FOR FIRM

[S.C. WADHWA]

Dear Experts,

We paid loading and unloading charges to our workers at factory as well as depot and book the said amount in our books as freight. Our workers can get help from truck drivers and helper or some time outsider to get load/unload the consignment timely if need.

Please give your valuable opinion in this regard.

Regards,

WADHWA

[Ganeshan Kalyani]

The arrangements is not digestive, why one should pay loading and unloading to their worker when they are been paid wages. also why it should be debited to freight if its nature is loading and unloading. If you account in freight account you will have to pay service tax under Gta.

[A J DEORA & ASSOCIATES]

For manpower supply to be triggered under Reverse Charges, the Manpower should be under the control and supervision of the company. If the assessee is exercising control and supervision, the 100% Reverse Charges needs to be paid by the corporate. Also, Loading and Unloading should be debited to a separate account -and not under Freight Account.

If the workers are being paid salary - then the account heading should be Wages.

This may also trigger compliance under ESI laws etc

Ashok Deora

[Ganeshan Kalyani]

Hope the query is resolved.

AI Summary

Manpower supply: outsourced loading and unloading attracts reverse-charge service tax if company controls and supervises the workers. Payments to employees for loading and unloading constitute wages and should be recorded as such; they do not create a separate manpower-supply service. Payments to outsiders or supplied labour performed under the payer's control and supervision qualify as manpower supply and may attract service tax under the 100% reverse-charge mechanism. Loading and unloading must be accounted separately rather than debited to a freight account to avoid unintended GTA exposure, and associated statutory labour compliances should be considered.