Understanding Service Tax on Salary and Reimbursements: Insights and Guidelines

Dear Friends,

Could anyone shed light on the service tax liability on salary income? I have a case here. However, due to identity restrictions, names have been changed. To understand the situation, kindly open the enclosed Service Tax.pdf file.

You can reply to me directly at [Login to view] also.

Regards

Yes, the service tax is payable on total reimbursements as per the valuation rules of service tax.

For the salary of an employee, no service tax is charged as per the negative list updated in the year 2012. However, for manpower consultancy services, service tax will be charged. For more details, you can contact me at:

Rahul Ramchandani
9595933999

Sir,

I am working for a company on a third-party payroll. I need to know if service tax is chargeable on my salary paid by the company, i.e., the company pays Rs. 15,000.00 per month against my salary.

What deductions are calculated by the vendor, such as TDS, service tax, service charges, etc.?

Thanks,
Manjeet Singh

Dear Sir,

A retired central government department head (after the age of 60) extended his term and for the two months, he was paid INR 15.20 Lakhs. Please inform whether he is required to register with the Service Tax and if service tax needs to be paid on the above INR 10 Lakhs.

Dear Anonymous,

Service tax is payable in the case of contracted employees. However, if there is a relationship between the employer and employee, then no service tax shall be payable.

Thanks & Regards,

V. SHAKYA
HR & Labour, Corporate Laws Advisor