Liability to pay servicetax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2012 we,a firm, have engaged a security services.
The service provider has charged only 25% Service tax.
Who will pay the balance 75%
Are we liable to pay 75%[as service receiver]?
if so, can we claim input credit for 100%?
please explain.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 November 2012 1. Partial reverse charge is applicable on security services.

2. In this case, the liability to pay 75% of the service tax liability is on the service recipient.

3. The service recipient can claim CENVAT credit of the 100% of the service tax - 25% on the basis of the invoice and 75% on the basis of the challan.

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