No service tax on manpower supplied by parent company to its project office in India: CESTAT

The article covers a significant CESTAT ruling that manpower supplied by a foreign parent company to its Indian project office is not taxable under the service tax regime. The Tribunal held that such transactions do not constitute taxable “manpower supply services” because both entities are not legally distinct in this context, and the arrangement is intra-organizational. It highlights legal provisions under the Finance Act and touches on past judicial precedents. This ruling is vital for multinational companies operating in India as it provides relief in terms of service tax liabilities and clarifies the treatment of internal staffing structures.