Pure Labour Contract

[ASHISH AGARWAL]

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 ?

AI Summary

Service tax classification for pure labour contracts: taxable under forward charge with point of taxation based on invoice or payment.
Pure labour contracts for on-site construction and finishing works are not manpower supply or works contracts but are taxable as an other than negative list service under forward charge, with contractors required to charge service tax on invoices. Where multiple services are bundled by a single contractor classification may differ; otherwise each service is classified separately. The point of taxation is the earlier of invoice date or payment, and if no invoice is issued within thirty days of completion, the completion date substitutes for the invoice date.