Reverse charge mechanism


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Querist : Anonymous

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Querist : Anonymous (Querist)
28 August 2012 One of my client company is providing security agency service... whether reverse charge mechanism is applicable to a private limited company?

28 August 2012 As your client providing Security service is Pvt. Ltd company, reverse charge mechanism is not aaplicable. According your client need to charge service tax on the bills raised by them subject to basic exemption limit.

28 August 2012 Yes reverse charge is applicable for security agency services 25% provider & 75% receiver, if the receiver happens to be company registered under the companies act.


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