pure agent
This query is : Resolved
18 June 2010
please answer me as soon as possible
Suppose company A is a management consultancy firm, there is a mutual agreement between company A and company B that company A will employe persons on its own pay roll and provide it to company B, in turn company B will give to company A all the cost regarding employees and 7.5% service charges on cost. right now company is paying service tax on COST+7.5%, but i am of the view that company A may become pure agent by altering contract and pay service tax only on 7.5%.
At present main clause of contract between company A and B is " Company A is responsible to pay to salayry and all other legal dues of employee and other legal formality"
FACT BEHIND ENTERING IN TO SUCH TRANSACTION
Company B doesn't want to take burden of employee on its own pay roll
My question is
1) Under Which Catagory above service is to be registered?
2) Can company A become pure agent of company B by altering Contract
please answer me as soon as possible
Suppose company A is a management consultancy firm, there is a mutual agreement between company A and company B that company A will employe persons on its own pay roll and provide it to company B, in turn company B will give to company A all the cost regarding employees and 7.5% service charges on cost. right now company is paying service tax on COST+7.5%, but i am of the view that company A may become pure agent by altering contract and pay service tax only on 7.5%.
At present main clause of contract between company A and B is " Company A is responsible to pay to salayry and all other legal dues of employee and other legal formality"
FACT BEHIND ENTERING IN TO SUCH TRANSACTION
Company B doesn't want to take burden of employee on its own pay roll
My question is
1) Under Which Catagory above service is to be registered?
2) Can company A become pure agent of company B by altering Contract
18 June 2010
Manpower suply and answer for question two is, No, Company A can not become a pure agent
Message likes :
1 times
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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Last year TDS Claim
- GST Registration Horse racing
- Small dealers gst returns filing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
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
