Service tax revers charge on recruitment agency
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 August 2012
Sir
if a placement agencies provide a employee
than what would be service tax machinsum
is there revers charges machisum is applicable on that bill ?
Sir
if a placement agencies provide a employee
than what would be service tax machinsum
is there revers charges machisum is applicable on that bill ?
CA Navin Jain
(Expert)
20 August 2012
placement agancies not covered by reverse charge.
CA CS Amit S. Kedia
(Expert)
20 August 2012
Yes, Service tax will be charged under reverse charge
CA Navin Jain
(Expert)
20 August 2012
@ amit, placement and recuirt agancies not coverd by reverse charge.
CA CS Amit S. Kedia
(Expert)
20 August 2012
The Board vide Circular No.96/7/2007-ST dated 23.08.2007 has already clarified that Educational institutes such as IITs, IIMs charge a fee from prospective employers like corporate houses / MNCs, who come to the institutes for recruiting candidates through campus interviews.
On the same line, it is covered under reverse charge subject to fufilling other creteria for reverse charge
On the same line, it is covered under reverse charge subject to fufilling other creteria for reverse charge
CA Navin Jain
(Expert)
30 August 2012
Reverse charge mechanism covers taxable services provided or agreed to be
provided by way of supply of manpower for any purpose. Recruitment agency
services being different from Manpower supply services, Reverse Charge
mechanism will not be applicable on it and hence, in such a case, service
tax liability will be on the service provider.
CA Ayush Agarwal
(Expert)
09 February 2016
Under section 65(105)(k) of the Finance Act, 1994. Section 65(105) (k) defined “manpower recruitment or supply agency services” as below:
“taxable service means any service provided or to be provided
(k) to any person, by a manpower recruitment or supply agency in relation to supply or recruitment of manpower, temporarily or otherwise, in any manner”..
But Post Releasing of Negative List applicable from 1st July 2012, They have asked for Reverse Charge for "Supply of ManPower Only".
vide Notification no. 30/2012-ST dated 20th June, 2012. Under said Notification, entry no. 8 deals with the applicability of reverse charge to supply of manpower only (Not Recruitment).
Hence RCM is not applicable on Recruitment Services.
Also from 1st April, 2015, - Now RCM on Suply of Manpower is 100% to be payable by Body Corporate (If Provider is Individual)
“taxable service means any service provided or to be provided
(k) to any person, by a manpower recruitment or supply agency in relation to supply or recruitment of manpower, temporarily or otherwise, in any manner”..
But Post Releasing of Negative List applicable from 1st July 2012, They have asked for Reverse Charge for "Supply of ManPower Only".
vide Notification no. 30/2012-ST dated 20th June, 2012. Under said Notification, entry no. 8 deals with the applicability of reverse charge to supply of manpower only (Not Recruitment).
Hence RCM is not applicable on Recruitment Services.
Also from 1st April, 2015, - Now RCM on Suply of Manpower is 100% to be payable by Body Corporate (If Provider is Individual)
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
- Depreciation Chart Companies Act
- EPF ECR NEW FILE SEP 17TH 2026
- Capital Gail Exemption Certificate
- Capitalgain tax purposes for valuation report compulsory
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- GST on Renting godown to KFCSC for Storage of Raagi
- Oct 2025 Invoices
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- TAX AUDIT ON PROFESSIONAL INCOME
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
