Friends,
A proprietorship firm engaged in supply of individuals as security guards in companies has taken registration under category "Business Auxiliary". He has supplied manpower but the recipient company has not paid service tax under reverse charge mechanism. Instead it paid service tax to the provider and Govt gets the tax from provider.
Is the service recipient liable under service tax law.
Regards,
ya ofcourse the service recipient will be liable to pay servc tax under reverse charge
The company should have discharged its share of the ST liablity.
To correct the error that is already done, the best thing for the company to do is take a letter from the Security agency stating the details of ST Lability discharged by the security agency and produce if there is audit or if it is called upon. The dept should not have any objection as the full ST liablity on the particular invoices has been discharged.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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