TaxTMI 
TaxTMI 
A company 'A' utilizes services of employees and infrastructure of Company 'B' and in turn reimburse the actual cost to the company 'B'. Is company 'B' liable to pay Service tax on the amount received from 'A'.
Service tax on expenses towards sharing of Employees and infrastructure of other company
25 Jul 2019 
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Supply of service: reimbursements for shared employees and infrastructure attract GST when parties are distinct persons.
Reimbursement for use of employees and infrastructure between distinct persons is a supply of service liable to GST, as falling within the definition of supply and the entry treating supplies between related or distinct persons in the course or furtherance of business; under the prior Service Tax regime, intra-group staff deputation could be exempt depending on the period and facts. (AI Summary)
Reimbursement for use of employees and infrastructure between distinct persons is a supply of service liable to GST, as falling within the definition of supply and the entry treating supplies between related or distinct persons in the course or furtherance of business; under the prior Service Tax regime, intra-group staff deputation could be exempt depending on the period and facts. (AI Summary)