07 November 2013
Hello Sir, I have some doubts regarding service tax. Hope you can clear them out. My client wants to start a placement agency plus training similar nature as of naukri.com. I want to know about service tax part. He would be charging some minimal amount at the time of registration then if a candidate suceeds the either company would be paying or student will be paying a months salary. whether service tax would be applicable on application fee also. Plus he would also be providing HR Training. Now i want to clarify that in which description should service tax registration be taken and if it is manpower recruitment and supply service whether reverse charge would be applicable? Hope you would help me in this matter and any relevant agreements between student and agency , company and agency would be of great help.
07 November 2013
The services rendered by your client clearly fall under Manpower Supply Services. Your client has to register under the same and all collections with respect to manpower recruitment, training and supply will be subject to ST.
If your client is not a body corporate then Reverse Charge will be applicable, but if he is a body corporate he is liable to collect and pay the full service tax.
CAclubindia
