Payroll outsource services

This query is : Resolved

Pankaj Chander (Querist)
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03 June 2016 A domestic company has outsourced its part payroll to another domestic company at service fee of 3 percent. The payroll of the employees are routed through outsorced company. Whether service tax is to be charged on service fee of 3 % or to the whole amount ie on service fee plus payroll amount routed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 June 2016 Service tax payable on service fee of 3% only.

Message likes : 1 times

Pankaj Chander

Pankaj Chander (Querist)
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07 June 2016 The authorities are not convinced with this. They are asking for service tax on full amount. Kindly share the relevant provision under service tax act enabling us to convince them. Also send your contact no. and email ID on my email - pankajchandergupta@gmail.com. My contact no. - 9811008000

regards,
CA Pankaj Chander

Rupesh Jain

Rupesh Jain (Expert)
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08 June 2016 you are taking manpower then you have to pay the service tax on total bill. if you are taking only payroll service means you are making payroll from outsider. then on charges service tax applicable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 June 2016 I need some more details like who recruited them and who maintain their service record.

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