Service tax on payment of gratuity

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2013 One security comapny has submitted a bill to us for payment of gratuity of there employee(security guard) & also added service tax on the same. Whether it is correct to pay service tax on such payment.
If yes then as per which clause or section we can pay.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

22 February 2013 I dont think this type of payment like gratuity should be paid by the company to security company in the first place. If u are ready to pay the expenses then the payment would nothing be payment for security and hence taxable under security service.

Message likes : 1 times

GN Patankar

GN Patankar (Expert)
Follow

22 February 2013 Normaly gratuity is applicable after complication of Five years of service of the employee, I dont think that U will be liable for Gratuity because U R not employer,. As far as Service tax is concerned there is no provision in the Rule, Salary ,Wages, Bonus, Gratuity etc etc are not covered.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now