Category - Labour supply

[sunil mehta]

A proprietory firm supplies labourers to a developer for civil construction work relating to resi./comm.activities. Query:(a)whether the above services will fall under 'construction of....' or 'Manpower recruitment.....'? The proprietoir raises the bill as follows: Unskilled workers.....15000/ Supervisors..... 5000/ Management chgs........4000/(20% of 20000) Service tax @12.24%... 2938/ Total.................26938/ (b)Whether above billing is correct? Thanking you,

AI Summary

Firm Queries Service Tax Classification: Does Supplying Laborers Fall Under 'Construction' or 'Manpower Recruitment'? Contract Analysis Advised. A proprietory firm supplies laborers to a developer for civil construction work and queries whether their services fall under 'construction' or 'manpower recruitment' for service tax purposes. The billing includes charges for unskilled workers, supervisors, management fees, and service tax. One respondent suggests the service falls under 'manpower recruitment,' advising a detailed contract analysis for accuracy. Another respondent agrees, asserting it is manpower supply since construction responsibility lies with the customer, and recommends disclosing service tax and education cess separately in the billing.