Service tax on security charges??

Hi sir,

we can ask to vendot to change the invoice.

regards,

Sudhakar.S

As per reverse charge mechanism recipient will pay service tax on the value of 75% and provider will pay 25% of the total value. If recipient will received the services from Pvt. Ltd. Company then only service provider will pay the service tax. 

 Rule4 A of service tax rules provides for issuance of invoice by service provider. Further as per clause (IV) of Sub rule (1) “service tax payable thereon” shall be indicated on the invoice. Accordingly entire amount of service tax shall be shown on the invoice.

Company has to pay 75% of service tax even if 100% charged by security agency, now you can only ask your security agency to change the bill and don’t pay him 75% of tax amount. although security agency has to charge "service tax payable thereon" on the bill as per rule4a of s tax rule, but it is not cleared payable by whom by service provider or receiver or both, so i will suggest he can show st payable by him and stax payable by service recipient separately in the invoice

Pradeep service recipient can claim cenvet as security service will fall under the defination of input service as per cenvet credit rule.