TaxTMI 
TaxTMI 
Sir am a labour contractor supplying labours for the government without material. I receive only minimum wages. Who should pay the service tax for the wages i receive?
Labour Supply
29 Apr 2017 
9 Replies 
2260 Views Asked by
Reverse charge mechanism not triggered for labour contractor supplying labour to government; service provider liable for service tax.
Labour contractors supplying labour without materials to a government entity are liable to pay service tax unless the specific conditions for the reverse charge mechanism are satisfied; if those conditions are not met the government receiver is not responsible to share or discharge the provider's tax obligation, and no exemption was indicated in the presented facts. (AI Summary)
Labour contractors supplying labour without materials to a government entity are liable to pay service tax unless the specific conditions for the reverse charge mechanism are satisfied; if those conditions are not met the government receiver is not responsible to share or discharge the provider's tax obligation, and no exemption was indicated in the presented facts. (AI Summary)