LABOUR CHARGES ON SERVICE TAX

[Rajeev Khulbe]

GOOD AFTERNOON TO ALL MY GREAT EXPERTS,

SIR CAN YOU PLEASE TELL ME

1 THE MEANS OF PURE LABOUR CONTRACT.

2- IS LABOUR CHARGES / PURE LABOUR CHARGES SERVICE CAME UNDER R.C.M WHERE SERVICE PROVIDER AND SERVICE RECEIVER WILL PAID SERVICE TAX @ 50%(15*50/100 = 7.5%)

AI Summary

Reverse charge on manpower supply: service receiver liable for full service tax where supply of manpower fits statutory definition.
Reverse charge applies when the activity constitutes supply of manpower as defined in the Service Tax Rules; notifications prescribe recipient liability under RCM, while pure labour contracts without material do not qualify as works contract service and the contractor must pay the applicable service tax.