Service tax on Manpower supply

[Asked by Guest]

Whether service tax is to be paid on manpower supply bill raised by the contractor for the services provided under SEZ area.

As per exemption Notification 4/2004-ST dt 31.3.04 if the service provided is consumed within the SEZ, then full exemption is available. Thus, if the manpower supply bill is for the personnel working within the SEZ, then no service tax is applicable.

AI Summary

Service tax exemption on manpower supply: no tax if services are consumed within SEZ under exemption notification.
Service tax on manpower supply is not leviable where the manpower services are consumed within a Special Economic Zone, so contractors raising bills for personnel deployed inside the SEZ benefit from a full exemption under the relevant exemption notification; services consumed outside the SEZ remain taxable unless covered by another exemption.