Loading/Unloading/Shifting/Stiching work done by labour of contratcor at our factory on Piece/MT/Meter rate- SCA codes??

[Narendra Soni]

Dear experts,

We are manufacturing fabric and bags.

Fabric is made from processing of Granules and then fabric is cut in different sizes and then stitched according to required Bag size.

1.Some labour of contractors are engaged in making fabric on our machines, we pay them on meter/MT basis.

2.Cutting and stitching work is done at our factory by the contractor's labour and we pay them on piece rate basis.

3.Further some labour are employed by labour contractor for loading/unloading/shifting of RM & FG, we pay them per MT basis.

Kindly suggest service description and SAC code of all the above three work done by labour contrators at our factory on piece rate/meter rate & MT basis.

.

[Rajagopalan Ranganathan]

Sir,

In my opinion the work mentioned by you will be covered by " Manufacturing services on physical inputs (goods) owned by others with SAC " 998898 - Other manufacturing services n.e.c. "

[Rajagopalan Ranganathan]

Sir,

In continuation of my view dated 26.6.2017 loading/unloading/shifting of RM & FG will fall under " Other supporting services for road transport n.e.c. with SAC 996749.

AI Summary

Manufacturing services on physical inputs classified as manufacturing services; loading/unloading treated as transport support services. Work by contractor labour carrying out processing, cutting and stitching on the principal's machines and paid on piece/meter rates is classifiable as manufacturing services on physical inputs owned by others (SAC 998898). Loading, unloading and shifting of raw materials and finished goods by contractor labour remunerated per MT is classifiable as other supporting services for road transport n.e.c. (SAC 996749).