Service tax liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2014 my company have payment to proprietorship firm for security services RS.1 lacs as a ADVANCE what ST liability shall be on My company and service provider under RCM.

Nischit Sanghavi

Nischit Sanghavi (Expert)
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22 July 2014 In respect of service provided or agreed to be provided by way of supply of manpower for any purpose, rate of service tax for provider of service is 25% and for service receiver 75%.

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2014 Nischit ji. i want what will be my service tax liability when advance payment to security services. on advance payment my service tax liablity to be deposit to GOV. through GAR 7.

Nischit Sanghavi

Nischit Sanghavi (Expert)
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23 July 2014 Your liability is Rs.9270/-
(Rs.100000*12.36%*75%)

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2014 Dear Nischit Ji , what will be the liability of service provider on the advance receipt in such case. and please mention rule or section
that say to pay SR ant SP must pay on advance payment under RCM.

Nischit Sanghavi

Nischit Sanghavi (Expert)
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23 July 2014 Under RCM, go to following link and refer point no.8
https://www.servicetax.gov.in/notifications/notfns-2012/st30-2012.htm

As per Service tax rule, service tax liability arises as per Point of Service rule. If invoice issued after 30days of payment then liability arises on the day when payment made.

Nischit Sanghavi

Nischit Sanghavi (Expert)
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