Applicability of date and rate on Labour contract

[Asked by Guest]

Is service tax leviable on bills raised by labour contractor whose labour we use.At what rate service tax is leviable and from which date.

[Surender Gupta]

Yes, service tax is payable on bills raised by labour contractor. The payment shall be made by the labour contractor. For further details please refer to practice manual on the site.

AI Summary

Service tax on labour contracting: liability falls on the labour contractor for tax on bills raised for supplied labour.
Service tax applies to amounts billed by labour contractors for supplied labour, and the labour contractor is responsible for paying the service tax on bills raised for labour services; rates and effective date are not specified and reference is made to practice manual guidance.