Security services

@ satheesh, If service provider is a company say pvt ltd, then he will charge full service tax @ 12.3% in his bill. 25% is applicable to proprietors and firms.

Regards

Anandan.s

Previously Govt has a lot of material on  reverse charge but last year govt brought a concept of "JOINT CHARGE MECHANISM"  In this service provider and service receiver have share their service liability arising in a transactions.. one of them is security services in which

If a security service provider provides services to a a 'company' Joint charge works and he has to pay 25 % and receiver will pay 75 %

Also refer concept of Specified Person in this regard for full understanding of the provisions.

Case 1: If Service Provider is a Company, Charge 100%, i.e. 12.36% service tax in Bill. Entire Service Tax Deposited by Service Provider.

Case 2: If Service Recevier is a Comapny, and Service Provider is Not a Company; Charge 25% of the Service Tax in Bill. Mention the 75% of Service tax in the Bill, which the Service Receiver Company is supposed to Deposite to the Department.

Company will Deposit the 75% of service tax mentioned in bill directly to the Department. The credit if available will be taken in Excise returns of the next month, on the basis of GAR7 challan.