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Taxation of training and recruitment services provided by a start-up

Blog Post created by www.withdia.com Your Intelligent Assistant on Jul 10, 2017

In this blog, we look at a query on taxation of training and recruitment services provided by a start-up.

 

Query:

We are a startup and provide Training, Recruitment and Contracting people to Software Services companies in India.

  1. Is there any concessions for a start up?
  2. What are the rates for the above three?  

 

Response:

Given that the business is engaged in supply of services:

 

  1. There are no concessions specific to start-ups under the GST law. While the composition scheme is available to persons whose aggregate turnover in a year does not exceed Rs.75 lakhs, the scheme is only restricted to suppliers of goods. 
  2. The rates for the 3 categories of services provided by you are as follows:
    • Training: 18% -- 999293 Other education and training services and educational support services: commercial training and coaching services 
    • Recruitment: 18% -- 99851 Employment services including personnel search, referral service and labour supply service 

      (6th digit code may be identified from the Schedule annexed to Notification No. 11 on Central Tax Rates, based on the applicability)

       

    • Contracting staff: 18% -- 998513 Employment services including personnel search, referral service and labour supply service: Contract staffing services

 

 

Legislative reference: Section 9 and 10 of the CGST Act, 2017 read with Notification 11/2017 - Central Tax Rates  

Authors: Meghana Belawadi and NR Badrinath

 

 

 

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