Regarding Labour work for ACP Work

[sanjay hemachandran]

Hello Sir,

We are Private Limited Co, we have given a work order to local party for APC work(Roof Sheet) only for Labour work material are used from old building material, the local party has given bill without service tax, he says he come under 10 lakhs turnover, should we pay service tax for them, Plz advise .

AI Summary

Company Not Liable for Service Tax on Contractor's Labor Work; Contractor Eligible for Exemption per Notification No.33/12-ST. A private limited company inquired about service tax obligations for a local contractor hired for labor work on ACP roofing, using old building materials. The contractor did not charge service tax, claiming a turnover below ten lakhs. The response clarified that pure labor services do not fall under works contract service and are covered under 'Other Than Negative List.' The contractor is eligible for a threshold exemption of ten lakhs under Notification No.33/12-ST, and Notification No.30/12-ST does not apply, meaning the company is not liable under the reverse charge mechanism.