whether it amounts to supply of man power

[hubert fernandes]

we are real esate developer and we avail input service of contractors in our construction activity. These contractors are issued work orders for execution of civil work. These works are not on covered under works contract and are executed by such contractors on square metere basis (ie Running bills are prepared for the work executed and payment are made to such contractors after deductiing applicable tds). Whether such service provided by these contractors would amount to Manpower supply service and be taxed under reverse charge mechanism.

i would also like to state some terms of the work order issued to such contractors

GENERAL TERMS & CONDITIONS AND SAFEETY MEASURES

xxxxx

2)labour shed , water for domestic need, fire wood shall be supplied by the owner

5) It will be the coontractors responsbility to distribute and obtain health cards to all employees employed by him including other statutory compliances such as PF, ESI, labour contract etc required under labour law and other related laws. failure to do so will attrcat strict actition. in case of non compliance the contractor will be solely liable and bear penal meeasures imposed by govt or local authorities.

SAFETY MEASURES

a) contractor shall ensure that all his workmen shall abide by the safety measures while working at site such as wearing of safety belt, safety shoes provided by the owner at site depending upon the nature of work...........

b)in case of workers required to ork on scaffolding such as external plastering ....... the contractor shall ensure that all his workmen are wearing helmets with strap of helmet properly locked and safety belt are to be worn properly by the worker with one of its end properly hooked to the scaffolding

 

in view of the above pl advise whether such survercies by contractor will be covered under manpower or otherwise

 

 

[YAGAY andSUN]

If such above mentioned services have not been specifically mentioned in the negative list, then, it means it is taxable.  Please check the Negative List first to dig out the applicability of service tax.

[Radha Arun]

As the billing is not for man-hours but for work executed, this is not manpower supply service.

AI Summary

Developer Questions if Contractor Billing Per Square Meter Falls Under Manpower Supply Services for Reverse Charge Tax. A real estate developer sought clarification on whether services provided by contractors for civil work, billed per square meter, qualify as manpower supply services subject to reverse charge mechanism under service tax laws. The work orders include provisions for labor compliance and safety measures. One response advised checking the negative list for tax applicability, while another clarified that since billing is for work executed rather than man-hours, it does not constitute manpower supply service.