Service tax - reverse charge

Hey, under reverse charge the liability of service receiver and the service provider is independent,So:

1.The service provider for security services should charge only 25% of 12.36% st in the invoice, even if he collects the full st and pays it to the gov. the service receivers' liability will not be absolved... the service receiver should remit 75% of the st to the gov from his side. So if they charge full st...deduct 75% and pay only the balance amount.

2. it does not matter whether the service provider has obtained the relevant registrations or not...the service receiver should pay his share of service tax liability under reverse charge.

Mam, then vehicle used for passanger how much service we have to pay

Dear Mr. Anil,

You have to service tax for your part i.e. 40% of total tax. It will be 4.94% including EC and SHEC on the service of Renting or Hiring Motor Vehicle under reverse charge.

Further, in relation to your previous query, please take care in case of security service, If Service provider is a registered company than Reverse charge mechanism will not be applicable. please check in your case.