29 April 2009
You have not clearly mentioned type of service for which billing is to be done. Also there is no matter if employee of X Co working in Y Co, if service is provided by X Co, Service tax to be charged and booked.
Company X has booked the service tax for the on the cost sharing of employees. According to me if Company X is the purely transferring the cost to the its sister concern then they should not charge service tax.