hi sir......i am a labour contractor in karnataka.... i am supllying 25 number of people to a electrical industry...does it comes under service tax?.....should i pay service tax? or is it exempted? please help me out sir
From India
1From India
Services of a labour contractor are liable to service tax.
You need to register for service tax if your annual turnover is Rs. 10 lacs or more.
Moreover, if the turnover is not Rs. 10 lacs but has reached Rs. 9 lacs, you need to apply for service tax registration.
Thanks & Regards,
Avika
From India, New Delhi
You need to register for service tax if your annual turnover is Rs. 10 lacs or more.
Moreover, if the turnover is not Rs. 10 lacs but has reached Rs. 9 lacs, you need to apply for service tax registration.
Thanks & Regards,
Avika
From India, New Delhi
ya thanks sir....i think u understood as a manpower requertment agency....but here we are providing contract labour to this electrical industry...& we have got the valid license from ALC regarding providing our contract labours... the workers whom we have provided are under our firm to whom we have provided ESI & PF & also their monthly payment is done through our firm...they are our employees...and they don't have any direct touch with that electrical industry....they just do the work specified there through us.....does this type attract SERVICE TAX.....please help me out & sort this thing ....thanks
From India
From India
Indian Service Tax
Manpower Recruitment Agency
Effective Date: 07/07/1997.
Authority: Notification No. 23/97-ST, dt. 02/07/1997 (for full text of Notification see under'Consulting Engineer').
Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.
Q.Whether the labour contractors, who supply their own labour on contract, would be covered under the definition of Manpower recruitment Agency?
Ans. No, since the labour contractors supply their own labour on contract, they do not help their client in recruitment of labour in any way. Therefore, the supply of labour on contract is not covered under the definition of Manpower recruitment Agency.
&
Labour contractor - Exempted
Man Power Recruitment Agency's Service
Point No. 4.
Most of the manufacturers in the Trade are entrusting a work to a contractor to a mutually agreed amount to complete the work viz. loading of cargo, unloading of cargo, packing of finished goods etc. The contractor brings his own men on his account and completes the entrusted work by using his own labour. The labourer is no way connected to the Trade/Management and will not come in the pay roll of management. On completion of the entrusted work, the contractor receives the agreed amount from the management viz. Manufacturer/Trader.
Therefore, it is to be clarified whether the contract work taken by a contractor to a mutually agreed amount will fall under Man Power Recruitment Agency.
Reply
As per Section 65(68) of the Act, Man Power Recruitment Agency means any commercial concern engaged in providing any service, directly or indirectly, in any manner of recruitment of man power, to a client.
The DGST, Mumbai has clarified vide question and answers (2000-2001) No. 7.5 that the labour contractors, who supply their own labour on contract, would not be covered under the definition of Man Power Recruitment Agency. Since, the labour contractor supply their own labour on contract, they do not help their client in recruitment of labour in any way. Therefore, the supply of labour on contract is not covered under the definition of Man Power Recruitment Agency.
[Commissioner of Central Excise, Madurai-II, Minutes of the RAC meeting held on 29/8/2003].
sir according to this we dont come under manpower recruitment agency & hence we r not under service tax na???? please sir help me in sorting out this confusion of service tax & also let me know if there is any new amendments regarding this....and also is service tax applicable to security agency who provides contract labors to company but maintains their payroll , esi & pf & monthly payment under the firm name & not through the company name....does this attracts the service tax
From India
Manpower Recruitment Agency
Effective Date: 07/07/1997.
Authority: Notification No. 23/97-ST, dt. 02/07/1997 (for full text of Notification see under'Consulting Engineer').
Rate of Service Tax: 8% from 14/5/2003 (5% upto 13/5/2003). 10% from 10/9/2004 - Cess 2% of 10% = 0.2. Total ST = 10.2%.
Q.Whether the labour contractors, who supply their own labour on contract, would be covered under the definition of Manpower recruitment Agency?
Ans. No, since the labour contractors supply their own labour on contract, they do not help their client in recruitment of labour in any way. Therefore, the supply of labour on contract is not covered under the definition of Manpower recruitment Agency.
&
Labour contractor - Exempted
Man Power Recruitment Agency's Service
Point No. 4.
Most of the manufacturers in the Trade are entrusting a work to a contractor to a mutually agreed amount to complete the work viz. loading of cargo, unloading of cargo, packing of finished goods etc. The contractor brings his own men on his account and completes the entrusted work by using his own labour. The labourer is no way connected to the Trade/Management and will not come in the pay roll of management. On completion of the entrusted work, the contractor receives the agreed amount from the management viz. Manufacturer/Trader.
Therefore, it is to be clarified whether the contract work taken by a contractor to a mutually agreed amount will fall under Man Power Recruitment Agency.
Reply
As per Section 65(68) of the Act, Man Power Recruitment Agency means any commercial concern engaged in providing any service, directly or indirectly, in any manner of recruitment of man power, to a client.
The DGST, Mumbai has clarified vide question and answers (2000-2001) No. 7.5 that the labour contractors, who supply their own labour on contract, would not be covered under the definition of Man Power Recruitment Agency. Since, the labour contractor supply their own labour on contract, they do not help their client in recruitment of labour in any way. Therefore, the supply of labour on contract is not covered under the definition of Man Power Recruitment Agency.
[Commissioner of Central Excise, Madurai-II, Minutes of the RAC meeting held on 29/8/2003].
sir according to this we dont come under manpower recruitment agency & hence we r not under service tax na???? please sir help me in sorting out this confusion of service tax & also let me know if there is any new amendments regarding this....and also is service tax applicable to security agency who provides contract labors to company but maintains their payroll , esi & pf & monthly payment under the firm name & not through the company name....does this attracts the service tax
From India
Dear Sir,
You are correct but the provisions have been changed since then. The said clarification has been withdrawn by the department.
The provisions of service tax have been amended to include "temporary supply of manpower by manpower recruitment or supply agencies".
Kindly refer to Circular F.no. B1/6/2005-TRU dated 27-07-2005 wherein the same has been clarified by the department.
Hope this would clarify the position.
Thanks & Regards,
Avika
From India, New Delhi
You are correct but the provisions have been changed since then. The said clarification has been withdrawn by the department.
The provisions of service tax have been amended to include "temporary supply of manpower by manpower recruitment or supply agencies".
Kindly refer to Circular F.no. B1/6/2005-TRU dated 27-07-2005 wherein the same has been clarified by the department.
Hope this would clarify the position.
Thanks & Regards,
Avika
From India, New Delhi
I am working in a placement consultancy. I need to know what % we should charge as service tax in voice. Nisha
From India, Kanpur
From India, Kanpur
The rate of Service tax is 10%. Further, the educational cess and S&H education cess amount to 3% the total tax rate comes to 10.3%. Hope this helps you. Thanks & regards, Avika
From India, New Delhi
From India, New Delhi
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