https://www.taxtmi.com/article/detailed?id=197 Rising service tax rates and expanding taxable services have increased operating costs, particularly where CENVAT credit is unavailable. Businesses should analyse outsourced services using ABC categorisation and consider replacing contractors with employees for functions like internal audit, maintenance, design and transport to avoid service tax on captive activities, reduce disputes over CENVAT eligibility, and improve control and valuation. Tribunal decisions show liability depends on the substance of arrangements; sharing employees with proper reimbursement or direct employment by the user entity can mitigate service tax risk. en-us Mon, 13 Oct 2008 00:00:00 +0530 Mon, 13 Oct 2008 17:56:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=197 Rising service tax rates and expanding taxable services have increased operating costs, particularly where CENVAT credit is unavailable. Businesses should analyse outsourced services using ABC categorisation and consider replacing contractors with employees for functions like internal audit, maintenance, design and transport to avoid service tax on captive activities, reduce disputes over CENVAT eligibility, and improve control and valuation. Tribunal decisions show liability depends on the substance of arrangements; sharing employees with proper reimbursement or direct employment by the user entity can mitigate service tax risk. Articles Service Tax Mon, 13 Oct 2008 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=197