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

Manpower supply classification: personnel provision typically treated as manpower recruitment service, with tax components shown separately.
Where a developer retains responsibility for execution and outcome, provision of workers and supervisors by a proprietorship is characterised as manpower recruitment/supply rather than a construction service; classification depends on contract terms and factual control. Invoicing should itemise labour categories and separately disclose statutory tax components rather than aggregating them with service charges.