reverse charge -shifting and dismantling of fixed assets

[pawan pant]

Sir,

I would like to know that whether service in respect of shifting and dismantling of fixed assets provided by contractor at factory is covered manpower service under reverse charge mechanism ?.

for further clarification, invoice charged by contractor on the basis of per machine shift rate.

AI Summary

Contractor's Liability: Shifting Fixed Assets Not Under Reverse Charge, Analyzed Under 'Erection, Commissioning, or Installation Services' A discussion in a forum addresses whether the service of shifting and dismantling fixed assets by a contractor falls under the reverse charge mechanism for service tax. It is clarified that if the manpower works under the contractor's supervision, it does not qualify as 'Supply of Manpower,' thus not subject to reverse charge. The service is classified under 'Erection, Commissioning or Installation Services,' with the contractor bearing the tax liability. The applicability of reverse charge depends on the contract's terms, and the service provider may qualify for a small-scale exemption. The discussion emphasizes the need for detailed contract analysis to determine tax obligations.