applicability of service tax (urgent)

[Guest]

a labour contractor who has an permanent staff of 150 people whom he pay a fix amount of salary per month. he receives payment from other contractor for supply of labours on daily basis. is he liable to register under service tax act and charge service tax for his services of pure labour supply. if yes, what are penalty for not registering under services tax once it crosses threshold limit of 10lakh. what are the service tax code applicable for his.

AI Summary

Labor Contractor Must Register for Service Tax if Annual Turnover Exceeds INR 10 Lakh; Penalties Apply for Non-Compliance. A labor contractor with a permanent staff of 150 who supplies labor on a daily basis is inquiring about the necessity to register under the Service Tax Act and charge service tax. The response clarifies that the contractor must register and pay service tax if the service threshold exceeds INR 10 lakh. Failure to register can result in a penalty of up to INR 5,000, and non-payment incurs significant interest. If the previous year's turnover is less than INR 60 lakh, there is a three percent interest reduction.