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 .

[KASTURI SETHI]

Pure labour cannot be classified under works contract service. Contractor is your job-worker. His service is covered under the category of "Other Than Negative List" Earlier it was covered under BAS. Threshold exemption limit of Rs.ten lakhs is admissible to the contractor under Notification No.33/12-ST. Since Contractor's Service is out of Works Contract Service, Notification No.30/12-ST is not applicable to him, so it is also not applicable to you. Service Receiver is also not under RCM.

AI Summary

Threshold exemption shields contractor from service tax; pure labour is not works contract and receiver not under reverse charge.
Pure labour for ACP roofing is not a works contract; the contractor is a job-worker and his service is classed as other than negative list. The contractor can claim the threshold exemption under Notification No.33/12 ST if within the turnover limit. Notification No.30/12 ST (works contract provisions) does not apply, and the service receiver is not liable under the reverse charge mechanism.