Reverse charge on security services
This query is : Resolved
18 August 2012
Dear Friends,
Can any one guide me in the matter relation to reverse charge mechanism of Security Services.
We are already paying the Service charges to our Security Service Agency on their bills. Is the notification no.45 & 46 relating to reverse charge mechanism is applicable to us.
So is it necessary to pay 75% of the Service Tax by us and balance 25% by the service providers or we can continue to pay the 100% of tax to said agencies.
Kindly suggest
Can any one guide me in the matter relation to reverse charge mechanism of Security Services.
We are already paying the Service charges to our Security Service Agency on their bills. Is the notification no.45 & 46 relating to reverse charge mechanism is applicable to us.
So is it necessary to pay 75% of the Service Tax by us and balance 25% by the service providers or we can continue to pay the 100% of tax to said agencies.
Kindly suggest
CA CS Amit S. Kedia
(Expert)
18 August 2012
Who is service prover and service receiver??????
like individual, firm etc
like individual, firm etc
18 August 2012
Service Provider & Receiver both are body corporates.
CA CS Amit S. Kedia
(Expert)
18 August 2012
Service Receiver is not required to pay on reverse charge basis.Service provider shall charge service tax @12.36% on the bill
18 August 2012
Is there any difference, if service provider is Individual
18 August 2012
Is there any difference, if service provider is Individual
CA CS Amit S. Kedia
(Expert)
18 August 2012
Yes.. If service provider is individual/firm and service receiver is body corporate then service receiver is liable for 75% of service tax.
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