Salary of Employees transferred to Group Company

629 views 1 replies

ABC Ltd primarily operates in Designing Work and is subject to Service Tax. 

It has transferred some of its on roll employees to its group company XYZ Ltd for a particular period for the sole use of their services by XYZ Limited. Salary during this period is being paid by ABC Ltd only and Debit Notes for the same are raised by it on XYZ Ltd.

Whether ABC Ltd is required to collect Service Tax on the amount recoverable from XYZ Ltd under Manpower Service Category?

Regards

Replies (1)

In a taxation every entity is a seperate entity. Here you are a service provider and service recepient is a different company and consideration is paid. So this supply of employees from one concern to another is taxable subject to general exception and it falls under manpower recruitment and supply agency service.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details