Whether service tax is charged or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2012 whether service tax would be applicable on advance given to Man power supplier agency who in turn will give advance to employees deputed to company when needed. The full money will be returned back to company at the end.

Whether service tax would be applicable on such advance?

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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27 July 2012 The advance given by the company to the manpower agency would be returned back to the company. Hence such advance is nothing but a deposit in the nature of security deposit that do not represent consideration for service. Therefore service tax shall not be applicable on such advance.