Goods and Services Tax – Started By: – Sagar Rijal – Dated:- 13-11-2017 Last Replied Date:- 30-10-2018 – If a Labour Contractor, who is unregistered or registered in GST law supplies pure labour on contract basis and is liable for TDS, then how are they treated in GST law?Does RCM applies over here on the part of Service Receiver or not?Please elaborate or give a link to find this query explaining both cases i.e, incase of registered or unregistered Contractor. – Reply By Rajagopalan Ranganathan – The Reply = Sir, As per Sl. No. 10 & 11 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017 as amended only the following are chargeable to Nil rate. Otherwise service provided by labour contractor is liable to gst either under forward charge or reverse charge. 10 Heading 9954 Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or a
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tanding of the query is right- It is the supply of manpower (by labour contractor).The GST is payable by the labour contractor who needs to get registered and pay the GST. RCM is not applicable on supply of man power under GST.TDS under Income Tax is applicable.RegardsS.Ramaswamy – Reply By KASTURI SETHI – The Reply = I also think so it is an issue of supply of manpower. What kind of work is being done by the supplied labour is another issue. – Reply By Sagar Rijal – The Reply = I have two queries as on the case explained before.1. If Contractor is registered under GST and supplies Labour for civil work purposes like culvert works, then how is he treated., and incase if he is not registered under GST then how is he treated?2. If the contractor is an service agency providing Security services ,then how is he treated if he is registered under GST law and incase if he is not registered under GST law. ** still my query is not satisfactory. – Reply By Ramaswamy S – The Reply = Depends on th
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r GST if registered (except if ur services are as per Sl. No. 10 & 11 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017).And There is no RCM (from 13th Oct'17 notification) for unregistered purchases. So you need not get registered if ur supplies are under exemption limit. – Reply By Ganeshan Kalyani – The Reply = The clause mentioned by Sri Rajagopalan Sir in his reply clarifies what is exempted service in connection with manpower supply. Further, both manpower supply and security agency service is under forward charge and supllier of service has to register provided his turnover is crossing the threshold limit. Also, there is no reverse charge on recipient if purchase of goods or services is from an unregistered dealer. – Reply By Sagar Rijal – The Reply = Thank You all of you experts and especially SETHI Sir. I have found my answer. – Reply By Ganeshan Kalyani – The Reply = Kudos to Sri Kasturi Sir. Receiving appreciation from querist is the remuneration for the
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