Taxability of Service tax

[Asked by Guest]

In continiuation to ID-124 by Ajay Kumar, If the client is charging the service charges on the basis of software engg engaged at other company place, still the services are not taxable or liable to pay service tax under MAN POWER SUPPLY.

[Surender Gupta]

From the facts, circumstances and agreements it is to be ascertained that the nature of this service is software engineer's service or service of a man power supply. Once, the nature of service is decided, applicablity of service tax shall be decided thereafter.

AI Summary

Service tax classification: whether deployment of software engineers is manpower supply or taxable software service depends on contract.
Whether charges for deployment of software engineers at a third party location attract service tax depends on the contractual characterization and factual matrix: specifically, whether the arrangement constitutes a supply of software engineering services or a man power supply; once the nature is established from facts and agreements, applicability of service tax follows.