Category - manpower recruitment

[BAL KRISHAN GARG]

Dear Madhawan , Whether related to my query B can'nt give its work to A on job work on the goods which can not be sent outside due to its process .Further for become liable under manpower recruitment there must be three ingredients : 1.Service are provided or to be provided to any person 2.Service are provided by a manpower recruitment or supply agency ;and 3.Services are in relation to the recruitment or supply of panpower, temporarily or otherwise in any manner here neither A is a manpower recruitment or supply agency nor the basic intention was to provide to B the employment and further labour was not required to follow up the instruction of B but the main object of the work processed is to complete under the instruction of A .

AI Summary

Job work classification determines whether activity attracts Business Auxiliary Service or falls under manpower supply, affecting service tax liability.
Whether outsourcing processing is manpower recruitment and supply service or job work determines service tax treatment: true job work involves a principal-supplied material returned after processing and may be taxed as Business Auxiliary Service where the final goods are exempt or be outside service tax if goods are excisable. Activities resembling technical work may fall under consulting engineering. Classification depends on contractual terms, operational control and evidential proof, not mere assertion.