18 September 2013
If any Man Power supply company is hired and charge Management fees + Salary to be paid to the outsourced employee (Employee are on Man Power supply Companies payroll)is service tax to be levied on the salary component also. for Example
Salary 100 Managment Fees 10 Total Charges 110 Service tax will be on Rs 110/- or Rs 10/-.
If the Company bill by showing Rs 100 as reimbursement towards salary paid to the employee on behalf of the company than what shall be the case
19 September 2013
No it is not considered as re-imbursements,, . . In your case Service tax payable on salary plus PF, ESI plus commission of manpower supplier. . . You need to pay service tax on gross amount charged which will be 110 . . See here re-imbursemens means expences incured as a pure agent,,,that too on actuals..like . . suppose auditors claimed re-imbursement of travelling expences on actuals on providing original bills,,here no service tax applicable,,in the same way service tax not applicable on re-imbursement to c&f acting as a pure agent and others
19 September 2013
Yes but If the Man power supplier gives supporting for salary paid (PF challan,Salary Slip etc) than would that not be claiming reimbursement??
20 September 2013
He should provide details of salary paid and statutory payments made at any case... . . . See amt paid by ur manpower supplier to those employees will form part of gross amt charged...as it is directly related to his output service
CAclubindia
