Service tax on security agency service
Querist : Anonymous
Please clarify as per Service Tax Notification No. 30/2012.
Whether the service provider has to Pay the 25% of Service Tax from his own pocket or by collecting the same from the Service Receiver.
OR
Is Service Receiver Has to pay 25% of Service Tax through the Service Provider & 75% directly.
service recipient will deposit service tax on 75% of the service value(mentioned on bill)
ultimately the bill the whole 100% tax is to be paid from the SR's pocket,
earlier 100% deposit by SP
now 25% by sp and 75% by sr, though going from the pocket of SR as always.
Querist : Anonymous
Thanks for Your reply.
Today I went to Service Tax Department to clarify this doubt and met Our Group Superintendent of Service Tax.
He advised me not to pay service tax to the service provider. According to him "Service Provider Has to Pay his portion(25%) of Service Tax from his pocket and Service Receiver has to Pay his portion(75%) from his pocket"
I don't know how far its right.
If Your are right, Up to which extent the Service receiver(Manufacture) can avail CENVAT Credit from this 100%.
25% on the basis of invoice and 75% on the basis of Challan of tax he deposited.
whatever i wrote, have written after a lot research done though I personally don't know this SCE, but many of them many times contradict each other.
it may be possible that you do contract with the service provider that we will not pay the tax of 25% and will be inclusive of amount paid, but this is contract between both the parties but not the general law.
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