Manpower supply

Some employees on the roll of holding company is appointed in subsidiary in various capacities. Will it fall under manpower supply? Should GST be paid on it? please clarify.
Replies (3)

The question depends on various facts : Are we paying salary directly to employees or holding company is paying them.  In the first case it would not be under salaries and in the second case we can debit the salary as inter company transaction and usually holding company reimburses the same..

holding company is paying the salary.

In the case of holding company paying the salary, subs. company will not be charging the same to Profit & Loss account, debiting the holding company as receivable.  I hope the point gets cleared 

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