Deputation of employees to group of company- reg.

[vinay wakde]

Ours is a public limited company. We have deputed some of our employees to our group company for a period of 4/5 months. Now we are raising debit note for collecting the Salary, remuneration, perquisites etc. of these employees. Whether the above service is falls under service category "Manpower supply service" or "Business support service"? Presently, we are service provider as well as service recipient. We do not have any agreement with the parent company that deputed employees sent for limited period on actual cost basis.

Regards,

VINAY

AI Summary

Manpower supply service: deputation to affiliated companies is taxable and supplier must account for service tax.
Deputation of employees to an affiliated company constitutes manpower supply service and is taxable even without a written agreement; the supplying company must account for service tax and, where necessary, amend its registration. While manpower supply is generally subject to the reverse charge mechanism, deputations for a specific purpose and period impose the primary tax deposit responsibility on the company supplying the employees.