Service tax applicability

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A foreign co. being a joint venture partner in an Indian Co., duputes / seconds its employee in the Indian Co. The said employee is taken by the Indian Co. on its payroll and salary is given to him after due tax deduction at source. Is there any service tax issue on providing the person to Indian co. on deputation/secondment ??

AI Summary

Service Tax Applicability on Foreign Employee Secondment to Indian Joint Venture: Payroll Determines Liability A discussion on a forum addressed the applicability of service tax when a foreign company seconds an employee to an Indian joint venture partner. It was clarified that if the employee is on the Indian company's payroll and receives a salary directly from them, no service tax is applicable. However, if the foreign company receives consideration for seconding the employee, it may be liable under manpower recruitment services, unless no charge is involved, as the employer-employee relationship exists between the seconded individual and the Indian company.