Annual Maintenance Contract for maintenance & daily cleaning of all toilets of office and factory to ensure hygiene and cleanliness have been entrusted to a non company vendor, for payment of 70000/- p.a . Total value of the service being less than Rs.10 Lacs , service tax is not being charged by the vendor. Office and factory is owned by the serv ice recipient company.
Query: Does the service recipient company have to pay service tax under the reverse charge mechanism?
i m working in a new established pvt ltd company, a pvt ltd company is providing security guard to us, their bill summary as below-
exp-20000/-+ service tax 2472=22472/-
pls help to calculate TDS and service tax.
is it under reverse charge ?
@ Pravin As the security serviec is provided by a company, it is not covered under reverse charge.
CAclubindia
