Our Company is registered for Service Tax for Couriers and assessable at 12.36%.
Of late some of the Companies contact us to provide them Messengers to whom they will entrust the work directly and we can claim their remuerations alongwith our profit for secondment of such messengers to them. We have been doing so and show them as " Providing Dedicated Messenger /Courier Service on fixed remuneration. On this we charge service tax @ 12.36% and deposite with STax Authorities. However, such companies say that the Service Tax should not be payable @ 12.36% and the service tax payable should be at the most for employment agencies.
My Questions are :
(i) Whether the Tax payable by the Courier Agencies for secondment of messengers to the Companies are covered for Service Tax for Courier Services ?
(ii) If not, what is the amount of service tax payable as for Employment Agencies ?
(iii) We are registered for Courier Services. Is Seperate Registration required for employment Agencies.
(iv) If we are not necessarily required to register seperately for employment agency, what will be rate of tax applicable for such agencies.
(v) Whether the two different rates of taxes can be shown in the same Return.