17 May 2011
We have outsourced our payroll process. The payroll processing agency has been registered as Management Consultants. Will we be able to avail credit of service tax charged by it in light of amended definition of input services? Does this get into category B of input service definition?
17 May 2011
Appropriate classification of the subject service appears to be " Business Support Service" in the light of recent amendment of the definition. Since accounting is one of the specified services that qualifies as input service, there is no reason to deny payroll processing which can be said to be incidental accounting function.
17 May 2011
Thanks a lot. Should we advise them to get their service tax registration amended? What risk does the service receiver bears if service provider is holding his registration under wrong category of taxable service?
CAclubindia
