Chargeability of Service Tax


This query is : Resolved 

15 October 2009 If some of the Employees of Holding Company have been working in the subsidiary comany.If holding company raise a bill on subsidiary company on account of salary for these employees working in the subsidiary company. The query is as to whether the holding company should also charge the Service Tax in the salary bill raised on Subsidiary company. If so under which service service tax will be charged.

15 October 2009 It's not to be termed as Salary Bill. The holding company is providing some service to the subsidiary company through it's emploees and as a matter of fact almost all services are done by employees.

So billing should be for the service offered and basis of bill ( amount to be charged) may be the salary of the concerned employees.

Service tax will be charged if the service offered is a taxable service under Service Tax Act i.e that depends on the nature of service offered and as most of the services are covered....... :-)

15 October 2009 Fully agree with Sanjay


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