Service Tax on Pure Labour bill

[Indrajit Mondal]

Dear All,

I have received a pure labour bill on electricty works of ₹ 1,23,201/- from a vendor who is a individual but he not mentioned any service tax so should i claim the claim the input and also show the service tax output liability in our A/c.

Bill mentioned as Conduit fixing on ceiling 30,420 sq ft

Please reply

[Himansu Sekhar]

If you are a company, you will pay the tax, otherwisev there will be no tax liability on the assumption that the turnover of the service provider is less than 10 lakh.

[Mr Rao]

I agree with Shri Himanshu Sha an expert. Your liability under Service Tax does arise only if you are a complany. In all other cases the liability under Service Tax will be on service provider only assuming his turnoner exceeds ₹ 10 lakhs during the previous year.

[Himansu Sekhar]

Thank you sir

AI Summary

Service tax liability on pure labour: company may face reverse-charge if service provider exceeds registration turnover threshold.
Whether tax applies to a pure-labour bill for electrical works turns on recipient status and provider turnover: a company recipient may have a reverse charge obligation to discharge service tax if statutory conditions are met, whereas no such obligation arises if the recipient is not a company. If the individual supplier's turnover is below the registration threshold, the supplier bears no service-tax liability and the recipient cannot claim input tax credit where tax is not shown on the bill.