Service tax applicability, Service Tax

[Manoj Aggarwal]

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 ??

Posts / Replies

[V Ramanujam]

Where the person is taken as employee in the rolls of indian company and salary is paid to him directly, no service tax is leviable on the salary paid to the employee.

[Madhukar N Hiregange]

Where the foreign co gets some consideration for seconding the employee they would be liable under manpower recrutiment services. Of course if there is no charge for the same there would no tbe liability since the employer employee relationship exists between the seconded person and the Indian co.