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For a manpower agency, the recruited personnel becomes a customer's employee so that the customer would now be responsible for the hired employee's salaries, benefits, training and discipline. A resource augmentation's employee remains its employee up to such time that the employee is absorbed by its client.

“Manpower Recruitment or Supply Agency” means any person engaged in providing any. service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or. otherwise, [to any other person];] [Section 65(68) of Finance Act, 1994 as amended].

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