Service tax - reverse charge

In case of Security Service, reverse charge is applicable w.e.f 07-08-2012 vide NN-45/2012 whereby NN-30/2012 has been amended.

If the security service is provided by an individual/proprietary firm, partnership firm, HUF or AOP AND the service recipient is a business entity registered as body corporate, only then joint reverse charge is applicable.

So, assuming that the security service recipient is a body corporate and the provider is not a company, then the point of taxation shall be the date of payment to the service provider (Rule 7 of POT Rules, 2012). However, if the payment is not made with 6 months from the date of invoice, then the point of taxation shall be the date of invoice (if invoice issued with 30 days of completion of service) otherwise the date of completion of service. 

The due date for payment of tax to the CG shall be 6th of the following month where  point of taxation occurs in case of e-payment.

According to Section 68(2) makes provision for reverse charge i.e. making person receiving the service liable to pay tax.Reverse charge is applicable only when service receiver is business entity registered as ‘body corporate’.50% tax by service receiver if service provider of works contract service is individual, HUF, proprietary or partnership firm or AOP.

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Miami Beach Florida Real Estate