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Manpower supply

M.Prabhu (Tax Professional) (101 Points)

18 December 2018

Some employees on the roll of holding company is appointed in subsidiary in various capacities. Will it fall under manpower supply? Should GST be paid on it? please clarify.

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Muhammed (Chartered Accountant) (251 Points)
Replied 18 December 2018

The question depends on various facts : Are we paying salary directly to employees or holding company is paying them. In the first case it would not be under salaries and in the second case we can debit the salary as inter company transaction and usually holding company reimburses the same..

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M.Prabhu (Tax Professional) (101 Points)
Replied 18 December 2018

holding company is paying the salary.

Muhammed (Chartered Accountant) (251 Points)
Replied 19 December 2018

In the case of holding company paying the salary, subs. company will not be charging the same to Profit & Loss account, debiting the holding company as receivable. I hope the point gets cleared