In a company there is a contractors who is providing Labour to the company.The worker works under the direction and control of the Company and Company pay the Labour charges to the contractor.
The contractors are only charging labour supply charges from the company without raising any Bill. The Company also deduct PF from the charges and deposit it in its own code.
My question is -
1.Weather the company falls under reverse charge mechanism under Manpower supply services?
Your views are much awaited.
Thank You
Debate on Reverse Charge Mechanism for Manpower Supply: Is Service Tax Applicable Without Contractor Invoices? A discussion on a forum addresses whether a company falls under the reverse charge mechanism (RCM) for manpower supply services. The company pays labor charges to a contractor without receiving a bill, and deducts PF, depositing it under its code. Responses vary: one suggests RCM applies, requiring contractors to register and pay service tax; another argues RCM doesn't apply if laborers are on the company's payroll. Further replies discuss the implications of not issuing invoices, the nature of employer-employee relationships, and the applicability of service tax based on the relationship between the company and laborers. (AI Summary)
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