Review of Related Literature and Studies

69. MANPOWER RECRUITMENT OR SUPPLY AGENCY’S SERVICES

(A) Date of Introduction: w.e.f. 07.07.1997 (Notification No.23/97-S.T dated 02.07.1997)

(B)

Definition and scope of service:

“Taxable Service” means any service provided or to be provided to any person, by a manpower

recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or

otherwise, in any manner;

[‘Explanation.—For the removal of doubts, it is hereby declared that for the

purposes of this sub-clause, recruitment or supply of manpower includes services in relation to

pre-recruitment screening, verification of the credentials and antecedents of the candidate and

*

authenticity of documents submitted by the candidate]

[Section 65 (105) (k) of Finance Act, 1994 as amended]

“Manpower Recruitment or Supply Agency” means any person engaged in providing any

service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or

otherwise, [to any other person];]

[Section 65(68) of Finance Act, 1994 as amended]

(C)

Rate of Tax & Accounting Code:

Rate of Tax

Service Tax

10% of the value of services

Education Cess

2% of the service tax payable

Secondary

and 1% of the service tax

Higher Education payable.

cess

Other

– As levied or applicable

Penalty/interest

( Rate of tax is effective from 24.02.2009.)

Accounting Code

00440060

00440298

00440426

00440061

( D ) Classification of Taxable Services:

(1) The classification of taxable services shall be determined according to

the terms of the sub-clauses (105) of section 65;

(2)

When for any reason , a taxable service is prima facie, classifiable under two

or more sub-clauses of clause (105) of section 65, classification shall be

effected as follows :(a) the sub-clause which provides the most specific description shall be preferred to subclauses providing a more general description;

(b) composite services consisting of a combination of different services which cannot be

classified in the manner...