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Reimbursement of salary

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Querist : Anonymous

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Querist : Anonymous (Querist)
18 September 2016 I am reimbursing salary to an agency for employees hired from it. I wanted to know that how should I accounts this expense in my books alongwith tax consequences if any. Also i have good relations with such agency so i dont pay any commission to it. Somebody please reply to my query at the earliest
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
18 September 2016 Account it as manpower supply expenses. If you are a company you are liable to pay service tax under RCM.

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