Mere supply of labour without material is not work contract It is pertinent to note that Hon’ble Supreme Court in case of Gannon Dunkerley and Co. V State of Rajasthan [66 Taxmann 229] (SC – 5 member Constitution bench) held that taxable event in works contract is the transfer of property in goods involved in execution of a works contract. Hence in case of contract for supply of labour, there is no transfer of property in goods and hence there is no tax liability under work contract service. Reliance in this regard can be placed on Ashok Kumar Garg v UOI (2002) 128 STC 442 (P&H HC DB).
Posted on: Tue, 11 Mar 2014 06:32:47 +0000
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