Dear Team,
We are about to start Human Resource deployment and management services to the local units of manufacturing and service industry under a registered firm name Bigroof Management Services Pvt.Ltd.,Kindly provide applicable taxation details.Your help would highly be appreciated.
Bigroof's HR services classified under 'Management Consultant Service' with 14% tax; small-scale exemption possible for turnover below 10 lakh. Bigroof Management Services inquired about applicable service tax for their upcoming human resource deployment services. It was clarified that their service falls under 'Management or Business Consultant's Service,' attracting a 14% service tax. The company, being the service provider, is responsible for collecting and depositing the tax. They can avail a small-scale exemption if their turnover doesn't exceed 10,00,000 in the current financial year. Service tax should be paid on the total billed amount, including service charges. The Reverse Charge Mechanism (RCM) is not applicable to them as a Pvt. Ltd. company. (AI Summary)