Taxation of accomodation and guest house service
This query is : Resolved
dipesh parmar
(Querist)
30 January 2014
Good afternoon
i have a client who runs resorts and also provides food service at the place
it is under abatement scheme and liable to pay 7.42% as service tax
it has been charged at 12.36 % as service tax for its security charges
the party has paid 25% as service tax and asked my client to pay the remaining 75%
so i want to knw whether we are liable to pay the tax and if yes how much
thanks
i have a client who runs resorts and also provides food service at the place
it is under abatement scheme and liable to pay 7.42% as service tax
it has been charged at 12.36 % as service tax for its security charges
the party has paid 25% as service tax and asked my client to pay the remaining 75%
so i want to knw whether we are liable to pay the tax and if yes how much
thanks
Ajay Raghatate
(Expert)
31 January 2014
Yes, as per Reverse Mechanizme, for recipient of security service is liable to pay 75 % & service provider liable to pay 25%.
Pls refer the link.
https://www.dateyvs.com/faqs-on-reverse-charge-in-service-tax/
Pls refer the link.
https://www.dateyvs.com/faqs-on-reverse-charge-in-service-tax/
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