Service tax on Loading & unloading charges

[Raj Malik]

1.Our Company is paying cash payment for loading & unloading charges to casual person. Will reverse charge be applicable under manpower supply.

AI Summary

Service Tax: Reverse Charge Not Applicable for Cash Payments to Casual Workers Without Contracts for Loading Services A company inquires about the applicability of reverse charge on service tax for cash payments made to casual workers for loading and unloading services. The workers are hired as needed, without any contractual agreement. An expert explains that services provided by casual workers in the course of employment are not taxable, but if a contractor provides such services, the consideration received may be taxable. The company presents two scenarios: charging customers for loading and unloading as income, and making payments to random workers without contracts. It is advised that service tax is applicable in the first scenario but not in the second.