Service tax liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 one of my client is engaged in supply of manpower service and it is agreed between client and service receivor that salary of manpower employed is to be paid by service receivor itself but in month of feb-2013 the salary is paid by client(service provider) and subsequently to be reimbursed by service receivor in month of july-2013

now my question is
- is the agreement valid(since ST is not charged on salary paid)
- is there any service tax liability arise in hands of service provider towards payment of feb-2013 salary to be reimbursed
- if not then can he raise such salary amount in bill not charging service tax

please reply

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2013 Ref.case:-
sri bhagavathy traders v/s CCEx.{2011} 24 STR 290 {Tri-LB}