SERVICE TAX APPLICABILITY ON PURE LABOUR CONTRACT

[Kunal Aggarwal]

Hi,

Please let me know SERVICE TAX APPLICABILITY ON PURE LABOUR CONTRACT. Individual having Wooden work on pure Labour Basis.

AI Summary

Debate on Service Tax for Pure Labour Contracts: Differing Views on Applicability and Importance of Invoice Clarity A discussion on the applicability of service tax on pure labour contracts reveals differing views. One participant states that service providers must charge a 15% service tax on pure labour charges, considering the exemption of the Small Scale Industry (SSI) limit. Another argues that pure labour contracts fall outside the scope of works contracts, as they do not involve the transfer of property in goods, which is taxable as a sale. It is also advised that invoices should clearly state 'Pure Labour charges' to avoid attracting auditor scrutiny.