Service tax liab in case of security agency
This query is : Resolved
CA Pramod Jain
(Querist)
05 January 2013
We are paying service tax @ 12.36% full to security agency (proprietorship firm). however as per clause in reverse charge mechanism service tax need to be paid @ 75% by receiver, pl clarify as agency is charging @ 100% and we are paying to them directly. whether bill needs to be changed.
Read more at: https://www.caclubindia.com/forum/service-tax-to-security-agency-234009.asp#.UOgPLqw9bFw
Read more at: https://www.caclubindia.com/forum/service-tax-to-security-agency-234009.asp#.UOgPLqw9bFw
Kaushik Vinod
(Expert)
06 January 2013
Dear Pramod,
Legally you if you are Body Corporate then you are liable to pay 75% direct to the Govt. vide GAR-7 Challan.
The Department can again demand 75% tax from you even if you have paid to the Prop. Firm providing the Services.
Better to issue Debit Note to Agency and pay the tax for which you are liable.
Statutory Liability can not be transferred to other person.
Thanks
Legally you if you are Body Corporate then you are liable to pay 75% direct to the Govt. vide GAR-7 Challan.
The Department can again demand 75% tax from you even if you have paid to the Prop. Firm providing the Services.
Better to issue Debit Note to Agency and pay the tax for which you are liable.
Statutory Liability can not be transferred to other person.
Thanks
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