The service of outsourced manpower, which the retail sector in the country employs, is likely to be relieved from the service tax barrier.
The high level group on service sector, constituted by the Prime Minister, has recommended that assessment of service tax in the case of ‘outsourced manpower services’ should be confined only to the fee component and should not include salaries of outsourced employees.
The group has also proposed that the government should set up a committee for revising provisions of Shops & Establishment Act, which was enacted 50 years ago.
The group is headed by Planning Commission member Anwarul Hoda and has high-profile members including Future Group CMD Kishore Biyani, ICICI Bank CEO KV Kamath, Trent managing director Noel Tata, Infosys CEO Nandan Nilekani and Wipro chairman Azim Premji.
