Tax sops for new jobs: I-T dept’s interpretation of Section 80JJAA of I-T Act leaves staffing companies worried

In a recent order, disallowing deductions under Section 80JJAA of the I-T Act, 1961, the authorities held that the manpower service provider only had a forced/legal “employer-employee relationship” as it complied with statutory deductions like PF, ESI, gratuity, etc., but did not exercise control over its employees.