Reverse charges machanism of security agency services

yes the service receiver has to pay 75% of servive tax laibility directly ot the goverment under partial reverse charge mechanism and also has register with service tax department

The person who is liable to pay service tax is liable to get registered under service tax. It holds good for service recipient too.

Partial Reverse Charge is Applicable When Service Receipients is Corporate.

Both Service Provider & Receipient Liablity is Different.

in Your Case, Service Provider Company Will Charge 25% of 12.36 Service Tax Only If They are Not Claiming SSP Exemption.

Further Your Liablity is NIL, Read With covered under reverse charge mechanism from 7th

well i think any business entity is liable to pay tax under partial reverse charge mechaism

Security agency Service is covered under Supply of Manpower service.

Partial Reverse Charge will apply if a supply of manpower service is provided by

i) any individual

ii) HUF

iii) Proprietary firm

iv) partnership firm

v) Association of Persons

 located in the taxable territory

to

i) Any company registered under the Companies Act

ii) business entity registered as body corporate

 located in the taxable territory.

Therefore in your case partial reverse charge is not applicable as the firm is receiving service.

  As per new service tax regime partial reverse charge taxability

I agree with Mr. Ayush. There will be no liability on service receiver under partial reverse charge as service provider is body corporate.Kindly refer to extract of Rule 2(d)(i) of service tax rules 1994 below.

(F) in relation to services provided or agreed to be provided by way of :-

(a) renting of a motor vehicle designed to carry passengers, to any person who is not engaged in a similar business; or

(b) supply of manpower for any purpose; or

(c) service portion in execution of a works contract-

 by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to  a business entity registered as a body corporate, located in the taxable territory,  both the service provider  and the service recipient  to the extent notified under sub-section (2) of section 68 of the Act, for each respectively.

Originally posted by : Ravi Nallipogu
	As per new service tax regime partial reverse charge taxability   S No Descriptttttion of Service Service Provider Service Receiver Service Provider Liability  Service Receiver Liability Remarks           1 Hiring /Renting of car for carry passengers             A)With abatement of 60% Any Person other than corporate entity   Body Corporate   NIL   40%     Receiver not engaged similar line of business .Notification No .26/2012dated 20th june ,2012.and Notification  No.30/2012 dated 20th june,2012 Corporate entity 40% NIL   B)Without abatement Any Person other than corporate entity   Body Corporate     60%   40% Corporate entity   100% NIL   2 Supply of Man power in any manner (Including security Agency services) Any Person other than corporate entity   Body Corporate     25%   75% Appliacability from 7th aug 2012   Corporate entity 100% NIL       3       Execution of Works Contract Any Person other than corporate entity         Body Corporate   50% 50% Valuation of works contract Notification No 24/2012-ST dated 6th june ,2012 Movable property : Execution of Original work  is 40% Maintenance or Repair  is 70% Immovable Property : other than above work  is 60%       Corporate entity     100%     NIL

Can You Post This in Attaching Excel/Wrd File.

Originally posted by : CA Manish Malu
	Security agency Service is covered under Supply of Manpower service. Partial Reverse Charge will apply if a supply of manpower service is provided by i) any individual ii) HUF iii) Proprietary firm iv) partnership firm v) Association of Persons  located in the taxable territory   to   i) Any company registered under the Companies Act ii) business entity registered as body corporate    located in the taxable territory.   Therefore in your case partial reverse charge is not applicable as the firm is receiving service.

I totally agree with CA Manish Malu.
 

Dear Members

Thank you for your valuable suggestions & replay.

Thanks & Regards

CA. Santhos Kumar S