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TMI BlogImposition of Service Tax on Consulting Engineer and Manpower Recruitment Agency - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... red by a manpower recruitment agency is defined as any service provided to a client, by a manpower recruitment agency in relation to the recruitment of manpower in any manner. The rate of service tax is 5% and the value of taxable service in relation to service provided by a manpower recruitment agency to a client shall be the gross amount charged by such agency from the client in relation to the recruitment of manpower in any manner. 3.2 It would be pertinent to note that the coverage of the term manpower recruitment agency is wide and shall include within its ambit the services provided by an agency from the primary stage of building a database of manpower for different categories of personnel employment, whether white collar or blue collar, whether for employment in India or overseas; determining manpower requirement for the client, preliminary identification, short listing and screening of prospective candidates, providing specialists for interviewing prospective candidates, arranging for their interviews at each stage; placing advertisements for recruitment of manpower in the print or electronic media etc. In short, service tax on manpower recruitment agency shall cover with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of taxable service in relation to service provided by a consulting engineer to a client shall be the gross amount charged by such engineer from the client for advice, consultancy or technical assistance in any manner in one or more discipline of engineering. 4.2 Consulting engineers shall include self-employed professionally qualified engineer who may or may not have employed others to assist him or it could be an engineering firm - whether organised as a sole-proprietorship-partnership, a private or a public Ltd., Company. 4.3 The services which attract the levy include all the services which are rendered in the capacity of a professional person and specifically include the services pertaining to structural engineering works civil/mechanical/electrical engineering works or relating to construction management. All services rendered within the above scope of the term engineering attract service tax provided they are rendered in the capacity of a consulting engineer. The scope of the services of a consultant may include any on or more of the following categories: (i) Feasibility study. (ii) Pre-design services/project. (iii) Basic design engineering. (iv) Detailed d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with rule 3 and 4 of the Service Tax Rules, 1994, every person responsible for collecting the service tax is required to be registered with the concerned Central Excise Officer appointed under rule 3. Notification No. 24/97-Service Tax, dated 2/7/97 amends rule 2 of the said rules so as to prescribe that the person responsible for collecting the service tax in relation to the services provided by a manpower recruitment agency shall be the agency which raises the bill for services rendered to a client and the person responsible for collecting the service tax in relation to the services provided by a consulting engineer shall be the consulting engineer who raises the bill for services rendered to a client. 5.2 Rules relating to service tax on other services have already been notified and the trade is advised to go through them. However, for the benefit of the services which are to be covered by the Notification No. 23/97 to 25/97-ST, Services Tax dated 2.7.97, the procedures to be followed for registration, maintenance of documents, filing of returns and the manner in which the service tax is to be paid and which were contained in chapter V of the Finance Act, 1994, notified to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the month covered in the quarter. 5.8 The assessment shall be completed on the basis of the particulars furnished in the quarterly return ST-3 and ST-3A, by the said Central Excise Officer. The triplicate copy of the quarterly return so assessed shall be returned to the assessee with assessment memorandum. In cases where the service tax assessed is more than the service tax self determined and paid by the assessee, the assessee shall pay the deficiency alongwith the amount of interest determined thereon within 10 days of the receipt of the copy of the quarterly return from the Central Excise Officer. The assessee may apply for refund, whenever he has paid service tax in excess of tax assessed, in accordance with the provisions of section 11-B of the Central Excise Act, 1994. Appellate Mechanism 6. Appellate mechanism provided in Central Excise Act, 1944 has been made applicable to Service Tax with some modifications (Section 85 and Sec. 86) of Finance Act, 1994 may be referred to). 7. ADMINISTRATIVE MACHINERY FOR COLLECTIO OF SERVICE TAX (1) A service tax cell has been created in the headquarters office of the Commissionerate of Central Excise, Delhi namely:- Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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