Manpower supply
This query is : Resolved
31 December 2013
Dear Experts,
My Company is registered under service tax under manpower supply and recruitment. My company hires persons on a contract basis and deputes them to different companies. Here we are only taking care of supply of persons and not the work.
The invoice raised by my company is
1. Persons Salary 50,000.00
2. Service Charges(10%) 5,000.00
3. S.Tax@12.36% on (2) 618.00
Is the above calculation of ST is correct?
As per our company's management, they say that the person salary they are collecting is a reimbursement which they pay to the person. So the service tax will be charged only on service charge and not on persons salary as it is a reimbursement. Please clarify?
My Company is registered under service tax under manpower supply and recruitment. My company hires persons on a contract basis and deputes them to different companies. Here we are only taking care of supply of persons and not the work.
The invoice raised by my company is
1. Persons Salary 50,000.00
2. Service Charges(10%) 5,000.00
3. S.Tax@12.36% on (2) 618.00
Is the above calculation of ST is correct?
As per our company's management, they say that the person salary they are collecting is a reimbursement which they pay to the person. So the service tax will be charged only on service charge and not on persons salary as it is a reimbursement. Please clarify?
Guest
Guest
(Expert)
31 December 2013
No you are wrong..Even the same business is done by me..but the service tax amount is collected on gross amount...(1+2)in your case.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Section 50-fixed asset-->building ceases to exist
- Consolidated financials
- Gift Received from nonblood relative
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
