TaxTMI 
TaxTMI 
Service Tax on Labour Charge
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....ervice Tax on Labour Charge<br> Query (Issue) Started By: - Gagan B Dated:- 29-5-2013 Last Reply Date:- 29-5-2013 Service Tax<br>Got 2 Replies<br>Service Tax<br>Dear All, We have opted a security Agency for manpower. I want to understand that, "Is service Tax applicable on whole amount" i.e Manpower wage + service charge 10% and on that service Tax OR "Manpower Wage different and service tax only....
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.... on service charge which I pay" Exp : Manpower Wage Rs.100 +10(service Charge) = 110 +12.36% S.Tax = 123.60/- OR Manpower Wage Rs. 100, Rs.10 Service Charge +12.36% Tax =11.24 = 111.24/- Ideally, Service tax can be applicable only on service charge ! which one is correct pls guide Rgds GB Reply By Pradeep Khatri: The Reply: Service Tax will be charged on the gross value of the services pr....
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....ovided. Further, refer Notification No. 30/2012-ST 45/2012-ST and 46/2012-ST in this regard. Reply By CA BALRAM PANDEY: The Reply: Dear Mr. Gagan So far as i have understood your question my reply is as below:- The valuation of services rendered under Manpower Services shall be determined as per provisions of section 67 read along with Service Tax (Determination of Valuation) Rules, 2006. So,....
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.... far as it is related to Manpower Supply, no specific provision for determination of taxable value has been provided. Hence the Taxable Value in my opinion will be total amount of consideration. Hence, in my opinion it will be (Wages + Service Charge) X 112.36%= Invoice Value. Rs. 100+ Rs. 10= Rs.110 + 12.36% of 110.00= 123.60 Thanks<br> Discussion Forum - Knowledge Sharing ....