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.
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