Hi there,
I completely agree with Tajsateesh and sawatabanerjee on their submissions. An employment contract cannot come under service tax, even at the FnF level, since there is no "service" rendered or accepted. Remember that the overheads and HR costs you seem to refer to are operational costs and not services attributable to employment.
I also second my friends' requests for you to share the relevant sections for your reference regarding the amendment in Service Tax rules in July 2012.
Regarding Loginmiraclelogistics' remarks, I personally found your comments rather unnecessary, abrasive, and quite offensive. Even in highly serious boardrooms, there is room for humor. I tried looking up the rules on CiteHR and couldn't find a rule that prohibits any of us from smiling when on this forum.
From India, Mumbai
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144I completely agree with Tajsateesh and sawatabanerjee on their submissions. An employment contract cannot come under service tax, even at the FnF level, since there is no "service" rendered or accepted. Remember that the overheads and HR costs you seem to refer to are operational costs and not services attributable to employment.
I also second my friends' requests for you to share the relevant sections for your reference regarding the amendment in Service Tax rules in July 2012.
Regarding Loginmiraclelogistics' remarks, I personally found your comments rather unnecessary, abrasive, and quite offensive. Even in highly serious boardrooms, there is room for humor. I tried looking up the rules on CiteHR and couldn't find a rule that prohibits any of us from smiling when on this forum.
From India, Mumbai
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Dear friends,
Thanks for these rejoinders from all of you.
It appears there has been a misconception in understanding the concept of ST as the provisions of taxation on services become more and more complex and are seen as a domain with potential for filling up the coffers of the exchequer. As a person practicing in ST matters and also HR functions, I can only view that some unscrupulous employers are trying to unnecessarily recover non-existent tax from helpless employees. This is evident from the queries raised by some of our friends. First of all, one should understand that a relationship between an "Employer" and his "Employee" does not come under the ambit of "Services" either during employment or anything related to such employment "thereafter." A settlement accrued and due, and settled subsequent to relinquishing the employment can never come under the "services" warranting the recovery of ST from such (ex) employee. Some extra cautious administrators and accountants could have inflicted such avoidable arguments and recovery. This has to be negated by the concerned at any cost to stop the continuance of such wrongful recoveries.
In order to provide some tips to the needy, I attach notes on ST, negative list, etc., for their ready reference.
Of course, there are innumerable notifications issued on ST and settled cases that could clarify certain specific issues, which are available on the respective websites.
Thank you.
From India, Bangalore
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Thanks for these rejoinders from all of you.
It appears there has been a misconception in understanding the concept of ST as the provisions of taxation on services become more and more complex and are seen as a domain with potential for filling up the coffers of the exchequer. As a person practicing in ST matters and also HR functions, I can only view that some unscrupulous employers are trying to unnecessarily recover non-existent tax from helpless employees. This is evident from the queries raised by some of our friends. First of all, one should understand that a relationship between an "Employer" and his "Employee" does not come under the ambit of "Services" either during employment or anything related to such employment "thereafter." A settlement accrued and due, and settled subsequent to relinquishing the employment can never come under the "services" warranting the recovery of ST from such (ex) employee. Some extra cautious administrators and accountants could have inflicted such avoidable arguments and recovery. This has to be negated by the concerned at any cost to stop the continuance of such wrongful recoveries.
In order to provide some tips to the needy, I attach notes on ST, negative list, etc., for their ready reference.
Of course, there are innumerable notifications issued on ST and settled cases that could clarify certain specific issues, which are available on the respective websites.
Thank you.
From India, Bangalore
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Dear friends, For those who are in need of some more on ST matters,use the attached information. Regards,
From India, Bangalore
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From India, Bangalore
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Here are other notifications issued during 2013 as attached.
From India, Bangalore
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From India, Bangalore
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Notice period shortfall is treated as a shortage of service and will have to be completed by someone else whom we would pay a fee. This fee attracts service tax, since the service tax follows the list of exclusions. This is my interpretation.
From India, Mumbai
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From India, Mumbai
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Dear Anonymous - if an employee's work is completed by a contractor (a fee that attracts service tax), it is a business decision YOU are taking and not the employee leaving. If it is completed by another employee, there is no service tax involved. Liabilities related to your business decisions are yours alone and cannot be linked to the terminations of another contract. This, to me, is nothing but unethical ways to gain a few thousand rupees of positive cash flow through incredibly creative accounting.
From India, Mumbai
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From India, Mumbai
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Go to the link in above post. See the link in reply in that forum. Notification is attached.
From India, Bangalore
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From India, Bangalore
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The link has a note posted by someone saying that this is now liable to service tax but there is no notification attached to the discussion
From India, Mumbai
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From India, Mumbai
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Service Tax.pdf