Reverse charge on manpower recruitment

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rishav

rishav (Querist)
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23 July 2013 Is reverse charge mechanism applicable on Manpower recruitment services ?

Ganeshbabu K

Ganeshbabu K (Expert)
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23 July 2013 Yes applicable..

Words used in definition is temporary or other wise..

word other wise will take manpower recruitment service also into the ambit of service tax

“Supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’ [Rule 2(g) of Service Tax Rules, inserted w.e.f. 1-7-2012].

Thanks & regards
ganesh babu k

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rishav

rishav (Querist)
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23 July 2013 But as Manpower supply/ Security Services and Manpower recruitment services are 2 different heads under service tax. And also there is a clause in the former head that the principal control on employee lies in the hand of manpower supplier and in the latter case the original employer has the total control over employee.

So, I am a bit confused, please do clarify..

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rishav

rishav (Querist)
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Ganeshbabu K

Ganeshbabu K (Expert)
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23 July 2013 No you are wrong

Service should be manpower supply i.e. under command of Principal Employer.

here principal employer is service receiver..

Please refer meaning of supply of manpower provided in rule 2(g) as above..

So after considering it i am in a confident stand that reverse charge will be applicable for manpower recruitment services..

Thanks & regards
Ganesh babu k