Exemption for charitable/religious institutions
This query is : Open
22 November 2011
hi,
Pls tell me if there is any exemption or rebate for a charitable or religious institution service reciever.(particularly for manpower/recruitment services)
the said institution is registered under sec 12A of Income Tax Act.
Pls tell me if there is any exemption or rebate for a charitable or religious institution service reciever.(particularly for manpower/recruitment services)
the said institution is registered under sec 12A of Income Tax Act.
23 November 2011
In the case of supply of manpower, individuals are contractually employed by the manpower recruitment or supply agency. The agency agrees for use of the services of an individual, employed by him, to another person for a consideration. Employer-employee relationship in such case exists between the agency and the individual and not between the individual and the person who uses the services of the individual.
Such cases are covered within the scope of the definition of the taxable service [section 65(105)(k)] and, since they act as supply agency, they fall within the definition of “manpower recruitment or supply agency” [section 65(68)] and are liable to service tax.
As amended by Finance Act, 2006 w.e.f. 1-5-2006, the scope of taxable service provided by "manpower recruitment or supply agency" was expanded by substituting the words "commercial concern" with "any person". Hence, currently there is no exemption even if the said service is provided to a charitable or religious institution.
Such cases are covered within the scope of the definition of the taxable service [section 65(105)(k)] and, since they act as supply agency, they fall within the definition of “manpower recruitment or supply agency” [section 65(68)] and are liable to service tax.
As amended by Finance Act, 2006 w.e.f. 1-5-2006, the scope of taxable service provided by "manpower recruitment or supply agency" was expanded by substituting the words "commercial concern" with "any person". Hence, currently there is no exemption even if the said service is provided to a charitable or religious institution.
Message likes :
2 times
23 November 2011
Thank you Shaleen
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Applicability of Ind As to associate of associate
- Refund of AY 22-23
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
