03 January 2010
If fellow companies are part of the group then no service tax is payable, but if the fellow companies has a separate legal entity, then yes the same shall be covered under Manpower recruitment services.
If the fellow companies fall under the same managment and same group "The CBEC has clarified that in such a situation, the two contracting parties act on a principal to principal basis and do not provide any services to each other and consequently no service tax would apply.
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