Manpower supply
This query is : Resolved
31 December 2013
Dear Experts,
My Company is registered under service tax under manpower supply and recruitment. My company hires persons on a contract basis and deputes them to different companies. Here we are only taking care of supply of persons and not the work.
The invoice raised by my company is
1. Persons Salary 50,000.00
2. Service Charges(10%) 5,000.00
3. S.Tax@12.36% on (2) 618.00
Is the above calculation of ST is correct?
As per our company's management, they say that the person salary they are collecting is a reimbursement which they pay to the person. So the service tax will be charged only on service charge and not on persons salary as it is a reimbursement. Please clarify?
My Company is registered under service tax under manpower supply and recruitment. My company hires persons on a contract basis and deputes them to different companies. Here we are only taking care of supply of persons and not the work.
The invoice raised by my company is
1. Persons Salary 50,000.00
2. Service Charges(10%) 5,000.00
3. S.Tax@12.36% on (2) 618.00
Is the above calculation of ST is correct?
As per our company's management, they say that the person salary they are collecting is a reimbursement which they pay to the person. So the service tax will be charged only on service charge and not on persons salary as it is a reimbursement. Please clarify?
Guest
Guest
(Expert)
31 December 2013
No you are wrong..Even the same business is done by me..but the service tax amount is collected on gross amount...(1+2)in your case.
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
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- REGARDING ITR FILING QUESTION
- Gst reverse charge mechanism to be claimed in the month of payment
- Short Term Gain Reporting ITR
- Error in uploading Form 10BD
- Sale of Mutual Funds In Diffirent Financial Years
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Itr processing refund
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
