𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗠𝗮𝗻𝗽𝗼𝘄𝗲𝗿 𝗥𝗲𝗰𝗿𝘂𝗶𝘁𝗺𝗲𝗻𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: “Consideration includes any amount payable for taxable services provided or to be provided, including salary, bonus, perks, etc., paid to secondees, which constitutes manpower recruitment service and is taxable.”

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Renault Nissan Automotive India Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: M/s. Renault Nissan Automotive India Pvt. Ltd. received a service tax demand for salary, bonuses, and perks paid to employees obtained via a Secondment Agreement with Nissan Motor Co., Japan. Authorities classified this under “manpower recruitment or supply agency” service per Section 65(68) of the Finance Act, 1994.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that payments made for secondees’ salaries, bonuses, and benefits under a secondment agreement constitute “manpower recruitment service” per Section 67 of the Finance Act, making them subject to service tax. However, penalties were removed due to revenue neutrality, and the extended limitation period was inapplicable.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Renault Nissan Automotive India Pvt. Ltd. vs. The Commissioner of G.S.T. and Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 41736 of 2019 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 15 June 2023 📜 This ruling confirms that employee compensation under a secondment agreement falls under manpower recruitment services and is subject to service tax.