TMI BlogEmployees sent on deputation to subsidiary/ associate companies (Service Tax)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, Please advise us regarding Service Tax chargeability on Deputation of the employees to the Subsidiary company. The employees were send to the subsidiary/ associate companies in Nepal on deputation. Recovering costs on actual basis and were not retaining any amount out of the payment to the subsidiary/ associate companies. These recovered costs were in the nature of salary and other cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the employees. Hence please advise whether Service Tax will be liable to be paid by us under such circumstances.Thanks and regards. - Reply By YAGAY AND SUN - The Reply = No Service tax liability shall occur since such there is a settle legal position in this regard. - Reply By Sanketh Meri - The Reply = This is a settled legal position with various judicial precedents favoring the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. No service tax is liable. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Since you are recovering costs which were in the nature of salary and other costs of the employees and you are not charging any extra amount for deputing the employees to your associate company in Nepal deputation of employees by you cannot be defined as 'service provided'. Further there is no relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ship of service provider and service receiver since the company in Nepal is your associate company. Therefore, in my view, you need not pay any service tax since deputation of employees cannot be treated as supply of manpower service. - Reply By Vijay Chitte - The Reply = It is doubtful, if of all the legal settled positions will apply after 01.07.2012, as the earlier definitions are now n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot relevant. As per my view, whatever take decision, inform to the department to avoid other legal penal actions. - Reply By KASTURI SETHI - The Reply = Sh.Shinde Ji, In support of the views of Sh.Ranganathan, Sir, a case law is appended below, especially, Para No.7.2 is very very relevant. Period is prior to 1.7.12. Even then it has force. 2016 (42) S.T.R. 1057 (Tri. - Mumbai) = 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016 (4) TMI 496 - CESTAT MUMBAI FRANCO INDIAN PHARMACEUTICAL (P) LTD. Versus COMMR. OF S.T., MUMBAI - Reply By KASTURI SETHI - The Reply = 2016 (41) S.T.R. 542 (Tri. - Mumbai) = 2015 (8) TMI 545 - CESTAT MUMBAI LARSEN TOUBRO LTD. Versus COMMISSIONER OF SERVICE TAX, MUMBAI-II - Reply By Ganeshan Kalyani - The Reply = Sir, service tax is not applicable on the amount reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered from sister concern toward deputation of employer. There are plethora of judgment which states that by disputing the employee to sister concern there is not service rendered as such and also there is absence of consideration. The case laws referred by Sri Kasturi Sir is all in favour. Thanks. - Employees sent on deputation to subsidiary/ associate companies (Service Tax) - Query Started By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : - SANDESH SHINDE Dated:- 25-8-2016 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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