Service Tax on Pure labour without any contractor.

[ALOK SHARMA]

Sir,

Whether Service tax attracts on pure labour (daily wages labour) which is hired without any contractor.

kindly reply in detail.

AI Summary

Debate on Service Tax Applicability for Directly Hired Daily Wage Labor Without Contractor Involvement Under RCM. A discussion on a forum addressed whether service tax applies to pure labor hired directly on daily wages without involving a contractor. Multiple contributors debated the issue, with some arguing that service tax is applicable under the reverse charge mechanism (RCM) due to the supply of manpower constituting a taxable service. Others contended that without a formal contract or corporate recipient, the tax may not apply. The discussion highlighted differing interpretations of the rules governing service tax on labor supply, with references to legal definitions and previous court rulings.