Service Tax : Hiring expatriate employees of foreign group companies under a contract of employment on payment of salaries and related provident fund contributions, etc., does not amount to 'manpower supply services'
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[2014] 52 taxmann.com 256 (Allahabad)
HIGH COURT OF ALLAHABAD
Commissioner of Central Excise
v.
Computer Sciences Corporation India (P.) Ltd.*
DR. DHANANJAYA YESHWANT CHANDRACHUD, CJ.
AND PRADEEP KUMAR SINGH BAGHEL, J.
CENTRAL EXCISE APPEAL NO. 173 OF 2014†
OCTOBER 16, 2014
Section 65(68), read with section 66A, of the Finance Act, 1994, read with rule 2(1)(g) of the Service Tax Rules, 1994 - Taxable Services - Manpower Recruitment or Supply Agency's Services - Period 2006-07 to 2010-11 - Assessee, a part of cross-border group of companies, hired certain expatriate employees in India transferred from other Group Companies - A contract of employment was entered into between assessee and said employees - Assessee paid salaries to said employees and also made provident fund and related contributions in India - Assessee also remitted 'social security benefits payable to expatriate employees under foreign laws' to its group companies - Department raised demand under manpower supply services - HELD : Activity involved did not amount to recruitment or supply of manpower - Further, there was no 'manpower recruitment or supply agency' - Since requirements of section 65(105)(k) were not met, no service tax was leviable [Paras 7 to 10] [In favour of assessee]
■■■
[2014] 52 taxmann.com 256 (Allahabad)
HIGH COURT OF ALLAHABAD
Commissioner of Central Excise
v.
Computer Sciences Corporation India (P.) Ltd.*
DR. DHANANJAYA YESHWANT CHANDRACHUD, CJ.
AND PRADEEP KUMAR SINGH BAGHEL, J.
CENTRAL EXCISE APPEAL NO. 173 OF 2014†
OCTOBER 16, 2014
Section 65(68), read with section 66A, of the Finance Act, 1994, read with rule 2(1)(g) of the Service Tax Rules, 1994 - Taxable Services - Manpower Recruitment or Supply Agency's Services - Period 2006-07 to 2010-11 - Assessee, a part of cross-border group of companies, hired certain expatriate employees in India transferred from other Group Companies - A contract of employment was entered into between assessee and said employees - Assessee paid salaries to said employees and also made provident fund and related contributions in India - Assessee also remitted 'social security benefits payable to expatriate employees under foreign laws' to its group companies - Department raised demand under manpower supply services - HELD : Activity involved did not amount to recruitment or supply of manpower - Further, there was no 'manpower recruitment or supply agency' - Since requirements of section 65(105)(k) were not met, no service tax was leviable [Paras 7 to 10] [In favour of assessee]
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