TaxTMI 
TaxTMI 
Sir,
Whether Service tax attracts on pure labour (daily wages labour) which is hired without any contractor.
kindly reply in detail.
Service Tax on Pure labour without any contractor.
18 Jul 2018 
15 Replies 
8074 Views Asked by
Manpower supply liability may trigger service tax under reverse charge when labour is supplied for consideration.
Whether service tax applies to direct hiring of daily-wage labour hinges on three elements: a taxable service provider, a service receiver, and consideration. If labour is supplied for consideration and fits the manpower-supply definition, it is viewed as taxable and may attract reverse charge; an invoice can evidence the contractual supply. Counter-views stress that certain notifications require a specified form of manpower supply or a body corporate recipient, so pure direct hiring without a supply contract may fall outside the provision. (AI Summary)
Whether service tax applies to direct hiring of daily-wage labour hinges on three elements: a taxable service provider, a service receiver, and consideration. If labour is supplied for consideration and fits the manpower-supply definition, it is viewed as taxable and may attract reverse charge; an invoice can evidence the contractual supply. Counter-views stress that certain notifications require a specified form of manpower supply or a body corporate recipient, so pure direct hiring without a supply contract may fall outside the provision. (AI Summary)