Service tax on Furniture making

[mukesh pareek]

Dear Expert's

Please give your valuable comment''s on below issue

1.We taken service from M/s.xyz for making furniture in our factory to use our own material.

2.Service provider charged bill mentioning "'LABOUR CHARGE ONLY'"

3.We have paid full (14.50) service tax under "Man power supply service"and service tax return also filled in last month.

Now we came to know that we have paid wrongly under "Man power supply service" instead of "Works contract service"

Now please advise what is correct category and if we have paid wrong then what is the solution ?

Thanks in advance.

AI Summary

Service tax classification: labour-only furniture work may be excise or job-work, determining who bears tax liability.
Where a principal supplies materials and a contractor supplies only labour to make furniture, tax treatment depends on whether the activity is manufacture (excise duty by the contractor if excise turnover threshold met) or a taxable job-work/service (service tax payable by the contractor if its service turnover exceeds the service-tax threshold); pure labour is not manpower supply. If the principal erroneously paid service tax under a different category, unilateral self-adjustment is not permitted and refund must be sought with supporting contractual and payment documents.