Place of provision of service

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saurabh agarwal (Querist)

11 May 2013 My query is

We are a body corporate registered in India.We have made a contract with a body corporate to provide security staff who will deliver their services outside india.
My com. has made a contract with each security person to provide services outside india.

My Question 1.
Whether the services provided by these Security Persons outside india(Through Intermidiary i.e. me)will attarct Service Tax in the hand of Security Perosns.

Question No.2

If answer of first question is YES, than whether Reverse Charge will applicable on my company?

Pls reply anbody expert.

Arvind Tiwari

Arvind Tiwari (Expert)

12 May 2013 Dear Saurabh,
When the service provider as well as Service receiver is in India , the service provided anywhere in the world , it will be taxable in India as per Rule 8 of Place of Provision Rules 2012.
So service provided by security persons to you are taxable in India.
Further No reverse charge is applicable when Service receiver as well as Service provider is Body Corporate.
Arvind 9322368699

Anoop Gupta

Anoop Gupta (Expert)

13 May 2013 I want to add that partial reverse charge is applicable in case of security services.

saurabh agarwal

saurabh agarwal (Querist)

13 May 2013 Thanks Arvind Ji.

I do agree with your opinion.But in this caser partial reverse charge will be applicable. As the Security Persons are receiving the amount from Body Corporate i.e. from my opinion.

Please also enlight on the matter that whether there is any scope to get the refund from the department. As my company has paid the tax on security persons billing under reverse charge mechanism.

Anoop Gupta

Anoop Gupta (Expert)

13 May 2013 In that case, I suggest you to not pay service tax again under reverse charge. Same transaction cannot be taxed twice.

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