2008 (9) TMI 50 - AT - Service Tax

Applicant has deputed low grade employees electrician and computer operator to their sister concern for doing work and recovered the amount attributable to their salaries and allowances and the said amount is sought to be treated as service charges received in connection with the management consultancy services. Prima facie, we hold that this may not fall under the category of management consultancy service. Accordingly, stay is granted

Summary

The appellate tribunal in New Delhi ruled in favor of the appellants, waiving pre-deposit of dues related to management consultancy services provided by low-grade employees to a sister concern. Recovery of the amount was stayed until the appeal was disposed of.