Applicability of Service tax

This query is : Resolved 

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

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.

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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