TaxTMI 
TaxTMI 
Pl advice service tax applicability on pure labour charges
& also provide notification
service tax on pure labour charges
17 Jan 2016 
12 Replies 
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Service tax on pure labour: labour-only contracts are taxable on gross charges, valuation includes labour and related costs.
Pure labour or labour-only contracts for painting and civil services without supply of materials are taxable as the service portion in execution of a works contract; valuation must follow service tax valuation rules and the amended definition of consideration, with tax on the gross amount charged including labour, subcontractor payments, machinery hire, consumables, establishment costs and attributable profit. Abatement notifications do not apply and the reverse charge mechanism is applicable. (AI Summary)
Pure labour or labour-only contracts for painting and civil services without supply of materials are taxable as the service portion in execution of a works contract; valuation must follow service tax valuation rules and the amended definition of consideration, with tax on the gross amount charged including labour, subcontractor payments, machinery hire, consumables, establishment costs and attributable profit. Abatement notifications do not apply and the reverse charge mechanism is applicable. (AI Summary)