15 August 2012
If individual (Proprietor) is rendering purely security services (not manpower supply) to Private limited company. What is the liability of company to pay service tax. 1) Is it 100% or 2) 75% (ie 25% provider & 75% to reciepient).
15 August 2012
Under reverse charge mechanism, second proposition is correct. The company need not bother about the service provider's tax liability. (After all, the company is going to deduct this amount fomr the bill of service provider. Right?)