TaxTMI 
TaxTMI 
Applicability of service tax - recruitment and supply of man power
12 Mar 2007 
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Service tax applicability for intercompany manpower supply depends on service classification and whether exemption thresholds are exceeded.
Applicability of service tax on intercompany provision of employees depends on whether the service is classifiable as "recruitment and supply of manpower" or another taxable category and whether aggregate taxable receipts exceed the statutory exemption threshold; below that threshold no service tax is payable, while exceeding it triggers liability and compliance under the appropriate service classification. (AI Summary)
Applicability of service tax on intercompany provision of employees depends on whether the service is classifiable as "recruitment and supply of manpower" or another taxable category and whether aggregate taxable receipts exceed the statutory exemption threshold; below that threshold no service tax is payable, while exceeding it triggers liability and compliance under the appropriate service classification. (AI Summary)
There are two companies under same management. one company is using employees of other company. and in consideration paying sum of Rs. 2 lacs per year. whether this receipt is taxable under " recruitment and supply of man power" .