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March 2013

Placement service charges and recruitment fees collected for facilitation of campus recruitment whether exigible to service tax under manpower recruitment or supply agency service?

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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Facts

It was contended by the Appellant that the entire function of facilitating campus recruitments was carried out by “Students Placement Committee” headed by a professor of the institute and the institute per se did not have any role in the process other than collecting the charges and fees. The Appellant relied on the Board Circular and its own case 2011 (23) STR 132 (Tri-Bang) for the period 1st May 2006 to 30th September 2009.

Held

The definition of management and manpower supply and recruitment services has been amended w.e.f. 1st May 2006. The circular and the case law relied on by the Appellant were in relation to the period prior to amendment and therefore could not be considered. Pre-deposit of Rs. 16 lakh was ordered.

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