Dear Sir,
We are company labor contractor is a individual labor contractor raised invoice for yearly bonus and yearly leave pay with is yearly benefit and we paid to the contractor my question is whether on this yearly payment to contractor attract to service tax under reverse charge mechanism ?
If yes after paid we are eligible for Input Service tax credit or not ?
labor contractor provide labor for Hose keeping as well as gardening work so we paid the service tax on that so service tax eligible for input service on house keeping and gardening work ?
Regards
Swapneswar Muduli
Contractor Questions Service Tax on Bonus and Leave Pay for Housekeeping, Gardening; Seeks Clarification on Reverse Charge, Input Credit A labor contractor inquired about the applicability of service tax on yearly bonus and leave pay invoices issued to a company for housekeeping and gardening services. The contractor sought clarification on whether these payments attract service tax under the reverse charge mechanism and if they are eligible for input service tax credit. Two respondents indicated that this issue had been previously discussed in the forum, suggesting the inquirer refer to earlier discussions or seek assistance from forum officers for more information. (AI Summary)