Supply of manpower services to Govt. Dept. is covered under Heading No. 9985 and taxable at 18%
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 5 October, 2021
Latest from Taxmann
Case Details: Authority for Advance Rulings, Karnataka Sadanand Manpower Service, In re - [2021] 130 taxmann.com 395 (AAR - KARNATAKA)
Judiciary and Counsel Details
-
- Dr. M.P. Ravi Prasad and Mashhood Ur Rehman Farooqui, Member
- Mahantesh. K. Hospeth, CA for the Applicant.
Facts of the Case
The applicant was providing manpower services like drivers, peons, housekeeping, data entry operators and other clerical staff to various Government Departments. It filed an application for advance ruling to determine taxability of supply of manpower services provided to various Government Departments.
The Authority for Advance Ruling observed that pure services provided to Government, local authority, Government authority or Government entity are exempt as per the Notification No. 12/2017 – Central Tax (Rate), dated 28-6-2017. However, in order to claim exemption, two conditions should be satisfied. Firstly, pure services (excluding works contract service or other composite supplies involving any goods) should be provided and secondly, it should be provided by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.
AAR Held
However, in the present case, manpower services would not satisfy second condition as it would not be provided under any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Hence, the provision of such manpower services would liable to tax at 18 per cent and fall under Heading No. 9985.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
