Service tax

This query is : Resolved

rishika agarwal (Querist)
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11 January 2014 When a company has taken services from Security Agencies only 25% of Service tax of 12.36% is paid by company to Security Agencies and balance of 75% is directly paid by the company to the department.In the bill amount only 25% of service tax is being added to the security services.
Why is it so?
What are the cases where we do like this?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 January 2014 well effectively because you are required to pay the bill + 25% of the service tax to the service provider.

such invoices would normally be wherein you are required to pay service tax under reverse charge mechanism,

an appropriate way of providing invoice in such cases is like this:
http://www.casahuja.com/2012/11/sample-service-tax-invoice-under.html

rishika agarwal

rishika agarwal (Querist)
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11 January 2014 Thanku so much for your valable information sir

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 January 2014 you are welcome rishika..

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