Service tax on security bill

Save Share

This query is : Resolved

Narendra (Querist)

16 June 2015 Sir,

We have received a security bill ( ours is a PVt Ltd Co.). They have charged 12.36 % service tax. pls guide regarding the service tax liabilty.

Regards
Narendra

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

16 June 2015 If service is provided prior to 1-4-2015 and invoice is also raised before that date, you have to pay 75& of 12.36% as service tax under partial 'reverse charge'.

If service is provided and invoice is raised after 1-4-2015 but before 1-6-2015, service tax @ 12.36% has to be paid by the service receiver under 'reverse charge mechanism'.

Narendra

Narendra (Querist)

16 June 2015 Sir,

Thanks for the reply.

Sir, the service is provided from 15.04.2015 and bill is raised on 01.06.2015 with 12.36 % service tax.

Pls guide.

Regards
Narendra Singh

Santosh Kalburgi

Santosh Kalburgi (Expert)

18 June 2015 Hello Narendra,
First of all do not pay the 12.36% of ST charged by the service provider. issue thema debit note to the extent of Service Tax amount billed by them.
Next, since the bill is raised on 1st of June, you need to pay 14% of ST on reverse charge mechanism.
Regards
Santosh G Kalburgi
9742022309

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