Security services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2012 Dear All,

We are a pvt Ltd Company. we are in receipt of a security services bill on dated 31/10/2012 by a security service agency having service tax registration number. The total amount of Bill Rs. 40500/- on which ST of Rs. 5006/- @ 12.36% is charged by the service provider total amount of bill is Rs. 45506/-. Please advice us how much part of ST should be paid by us to service provider and to the Service Tax Authorities.

An early reply is highly appreciated.

Thanks In Advance.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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01 December 2012 If the service provider is an individual or HUF, then partial reverse charge is applicable and service tax liability shall be as under:

Service Provider - 75%
Service Recipient - 25%

If the service provider is a person other than an individual or HUF then the whole liability is to be borne by the service provider.

What is the entity of the service provider in this case?

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2012 thanks for an early reply.

In our case service provider is a Registered Firm.

please advise me.

Thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 December 2012 In case the service provider is a partnership firm, whether registered or not, then also partial reverse charge is applicable and the service recipient is liable to deposit 75% of the service tax liability.

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