Service tax on security guards payments
This query is : Resolved
24 May 2016
We have engaged a security agency and they are providing security guards to our office. Their bills shows as below:
Charges for 2 Persons 20,000
Service Charge @ 10% 2,000
Sub-total 22,000
Service tax @ 14.50% 3,190
Grand Total 25,190
For last one year we have deducted only TDS and paid full amount to the agency. As per the Service Tax reverse charge mechanism we were supposed to remit 100% Service tax amount but instead we paid it to the agency. Going forward we will do reverse charge but for last one year whether we will be liable to pay service tax since we have already paid full amount to agency. Please help.
Charges for 2 Persons 20,000
Service Charge @ 10% 2,000
Sub-total 22,000
Service tax @ 14.50% 3,190
Grand Total 25,190
For last one year we have deducted only TDS and paid full amount to the agency. As per the Service Tax reverse charge mechanism we were supposed to remit 100% Service tax amount but instead we paid it to the agency. Going forward we will do reverse charge but for last one year whether we will be liable to pay service tax since we have already paid full amount to agency. Please help.
Ganeshbabu K
(Expert)
24 May 2016
1)Generally statutory liability is cannot be shifted so as per RCM ,If statutory liability is of service receiver, he alone is liable.
2)With this reason your service provider may not deposit service tax collected from you to department which is not liable from his part, so first make sure that your service provider deposited tax collected from you to dept. may get a declaration from service provider in this regard which may be used later when department insists you to pay service tax again for this,
3)if dept. not convinced you have no option left except to pay servicetax again so do not make such miscompliances herefrom
2)With this reason your service provider may not deposit service tax collected from you to department which is not liable from his part, so first make sure that your service provider deposited tax collected from you to dept. may get a declaration from service provider in this regard which may be used later when department insists you to pay service tax again for this,
3)if dept. not convinced you have no option left except to pay servicetax again so do not make such miscompliances herefrom
Rupesh Jain
(Expert)
24 May 2016
if you are PVT LTD company then service tax you have to pay if service provider is non company. if it is also company then no RCM liability of your company.
24 May 2016
We are a Private Limited Company and the service provider is also a Private Limited Company, so RCM liability wont arise? Please clarify
Rupesh Jain
(Expert)
24 May 2016
then no RCM service liability arise in your hand.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Oct 2025 Invoices
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
