Applicability of Service tax

This query is : Resolved

Amit (Querist)
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29 April 2009 Sir,

kindly refer the following case law and guide on the same.

we have two companies let us say X and Y under same management and employee of X company are working part time in company Y.

Now company is X ltd has booked bill on Y ltd. and booked service tax in his bill. whether it correct to booked service tax on thsi transaction?

If kindly refer the liturature

Thanks

CA. Neha Gupta

CA. Neha Gupta (Expert)
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29 April 2009 You have not clearly mentioned type of service for which billing is to be done. Also there is no matter if employee of X Co working in Y Co, if service is provided by X Co, Service tax to be charged and booked.

Amit

Amit (Querist)
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02 May 2009 Thanks for the reply.

Company X has booked the service tax for the on the cost sharing of employees.
According to me if Company X is the purely transferring the cost to the its sister concern then they should not charge service tax.

Kindly guide on the same.

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