Hi,
We are in a manufacturing unit (Textile) and receiving labor services, paying service tax for the same. Someone told us that if we can do the same work on a piece-rate basis, we can save on the service tax. Please help me understand this. I would appreciate your valuable suggestions.
Regards,
Sandeep C.
From India, Mumbai
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3We are in a manufacturing unit (Textile) and receiving labor services, paying service tax for the same. Someone told us that if we can do the same work on a piece-rate basis, we can save on the service tax. Please help me understand this. I would appreciate your valuable suggestions.
Regards,
Sandeep C.
From India, Mumbai
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Is it pure labour or with materials? There is a composite scheme for ST is available, if the services are with materials?
From India, Lucknow
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From India, Lucknow
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It is Pure labour only. All are in this for mending work category.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Sandeep,
Instead of changing the system, you can claim credit of CENVAT against the excise duty payable on your final product. Please check the exact status of the situation with the complete facts of the case.
In case you wish to seek a proper legal/professional opinion on the same, our team of legal and taxation experts shall be pleased to help you.
Please feel free to connect.
Thanks,
Kind Regards,
Avika Kapoor
Vice President - Operations
Website: [Kapgrow](http://www.kapgrow.com)
From India, New Delhi
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Instead of changing the system, you can claim credit of CENVAT against the excise duty payable on your final product. Please check the exact status of the situation with the complete facts of the case.
In case you wish to seek a proper legal/professional opinion on the same, our team of legal and taxation experts shall be pleased to help you.
Please feel free to connect.
Thanks,
Kind Regards,
Avika Kapoor
Vice President - Operations
Website: [Kapgrow](http://www.kapgrow.com)
From India, New Delhi
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Good afternoon, I am an HR Manager for a Garments (production & retail stores) company in Kerala. What will be the minimum wages payable to sales people in shops as per minimum wages act?
From India, Kochi
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From India, Kochi
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Service tax is applicable based on the annual bill amount but on the notified services. A list for service tax applicability has been notified. You can check and download the list or write to me for the list for service tax purposes.
Manpower supply, as you explained above, through a contractor, is a normal practice. If the bill amount is going to be more than Rs. ten lakhs a year, your company needs to give a credit at 14%, and the contractor is liable to file return compliance under his Service Tax number about the same.
Regards,
RDS Yadav
Labour Law Adviser
From India, Delhi
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Manpower supply, as you explained above, through a contractor, is a normal practice. If the bill amount is going to be more than Rs. ten lakhs a year, your company needs to give a credit at 14%, and the contractor is liable to file return compliance under his Service Tax number about the same.
Regards,
RDS Yadav
Labour Law Adviser
From India, Delhi
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If your company is registered under the Companies Act, reverse charge applies.
Your company has to deposit 75% of the 14% service tax, and the remaining 25% is to be paid by the service provider. The service provider will claim the 25% of the 14% from you and deposit it accordingly.
From India, Lucknow
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Your company has to deposit 75% of the 14% service tax, and the remaining 25% is to be paid by the service provider. The service provider will claim the 25% of the 14% from you and deposit it accordingly.
From India, Lucknow
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ST-Point of Taxation in Service Tax.doc