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2013 (10) TMI 821 - AT - Service TaxManpower Recruitment Agency u/s 65(105)(k) - Sharing of expenses / cost between two companies - Whether the appellant would fall under the definition of Manpower Recruitment and Supply Agency - Held that:- Following M/s. Paramount Communication Ltd. Vs. Commissioner of Central Excise, Jaipur [2013 (3) TMI 38 - CESTAT NEW DELHI ] - service tax liability is on a commercial concern engaged in providing any service, which is recruitment or the supply of man power - the appellant is a composite textile mill and is not a commercial concern it engaged in primarily in recruitment or supply of man power. The service is by the personnel to the two companies in question and not one company providing service to the other company - So there is no taxable activity on the part of the appellant to the other to be taxed under manpower supply service taxable as 65(105)(k) and therefore, the stay petition as well as appeals are allowed - The fact that payment to employee is made by one company and there is inter-company payment of the share of the cost of the employees utilised by the other company cannot be interpreted to mean one company was providing service to the other – order set aside – Decided in favour of Assessee.
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