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2018 (4) TMI 774 - AT - Service TaxClassification of services - the respondent stationed various Managerial / Supervisory and technical staff at those hotels - reimbursement of salaries and perks of the managers deployed to associate/subsidiary hotels - whether the service taxable under the head Manpower Recruitment and Supply Agency Service? - Held that: - the respondent was established with the sole objective of providing the hospitality business of itself and through its associated companies. Since the actual expenses incurred by the respondent towards deployment of the managerial personal were reimbursed by the hotels on actual basis, without any markup, it cannot be said that such expenses should be considered a service fee, taxable under the category of “Man power Recruitment or Supply Agency” service. In the case of Fortune P arks Hotels Ltd. [2016 (12) TMI 605 - CESTAT NEW DELHI], which is one of the hotels, where the respondent deploys its staff members, the Tribunal has held that the salary paid to the employees and reimbursed by the hotels, without any markup, cannot be subjected to service tax under Section 67 of the Act, by treating the same as part of the 'gross amount' charged by service provider for services provided by him. Appeal dismissed - decided against Revenue.
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