Dear Sir,
One of my client [Corporate Entity] is in realty sector which allots labour contracts [Individuals] for getting the civil, plumbling, electrification, etc work done at it site. I want to know whether the same will be covered in Manpower supply services or its a job work.
Further, if its a job work then the contractor has to charge service tax as it will be covered under forward charge. Under which head he will collect service tax ?
Realty sector contracts for civil, plumbing, and electrification work classified as 'other than negative list service,' subject to 15% tax. A client in the realty sector seeks clarification on whether labour contracts for civil, plumbing, and electrification work are classified as manpower supply services or job work, affecting service tax obligations. Experts in the forum conclude that such contracts fall under 'other than negative list service' and are subject to a 15% service tax under forward charge. It is neither manpower supply nor works contract. A member references a circular suggesting these contracts may be categorized under Construction of Residential Complex service, with service tax charged accordingly. The point of taxation follows the general rule of the earlier invoice or payment date. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
