Sister concern

'B'  should book the expenses in his books of accounts. It may be debited it in the respective head of account i e  Travelling Expenses or Sales Promotion Expenses.

That person is not an employee of 'B' he may treated as a professional and TDS may be deducted if applicable.

Rajesh

I agree with the Above explanation..................

 Thanx for the reply...................

As per my opinion B have 3) options

a)b can charges it as service charges, travelling expenses or sales promotion as applicable and accordingly B will charge service tax and TDS if applicable.

b) or it can charge as salary.

Can B charge it as salary? bcoz there is not any law that says one person can be employee of only one company.I mean to say That person worked for B for 15 days can b paid salary for 15 days.

Is there any rules under any law for employing a person?

if B cant charge under salary..............why?

option c) A can raise bills to B for the amouint payable by B to the person. what will happen if A raises bill?

When u say that the employee is a Salaried person.....pls clarify in whose books its a salaried person ..in A or in B?If its in A, then RAjesh is right..otherwise IF B is paying him a Salary then it should be debited to salaries a/c in b's books......... 

 In my question its clear that B uses A's employee................that means the person is employed by A but for few days used by B

1) B should charged it as revenue expenses as I mentioned above. the person is not liable to pay service tax (his income is not cross the limit for ST).

2) 'B' must not charged it under head of Salary. becoz there are no relation of employer - employee. 'B' is paying the reimbursement of expenses and honorarium for that period.

The person is still employee of 'A' and during his travel he is on leave or without pay from 'A".  After completion of travelling he will rejoin to 'A' then How can 'B' pay salary.

3) There are no role of 'A' in that whole act. 'A' is just an employer nothing else.

The task completed by that person was related to only 'B' then it must be accounted in 'B' 's Books of account in relevant head.

'B' takes services of that person as a professional Payment of that person should be treated as 'professional Charges' and TDS is also deducetd by 'B' if applicable.

Hope it will cleared to you

>> Rajesh

 ya its clear now.

if option 'a' is opted: why will B charge sservice tax?

if option 'b' is opted: no problem. as A's employee is employed by B.

if option 'c' is opted: A will charges service tax, if applicable. B will deduct TDS if applicable. A will treat it as income. B will debit it to correspoding head.

Actually in option a I was asking about the person..................by mistake I wrote for B

now, in my opinion all the three option are correct.

Good explanation.......

agree with mr.rajesh,,,

dear friend

if B's is using A's Emplyoee then what is condition to use their emplyoees

if their is no condition it will charge as a his employee because any employee is for part time and also for 1 or 2 days then we also paid to him

if there is any condition pls clear it

Thanks

Nitin GRover

i also feel it should be charged as service charges or professional fees.

it cannot be salary becoz it is for a temporary period