Service tax applicability

Dear Mr.Sandeep Gupta

I understood that your client is security service provider and in the same context you have raised the question.

Q.1&3

Entire bill amount (exlcuding service tax) shall be his Income as your client is providing security service on principle to principle. He can claim expenses towards salary cost and other business expenditure.

Q. 2. On Which Amount Service Tax Charged by him. 

Service tax shall be levied on entire bill amount. The rate of service tax depends, if he fullfiles the condition for partial reverse charge than 3.09% else 12.36%

I hope above will clear your doubt.

Regards

Dharmesh