Invoice of security provider without service tax

This query is : Resolved

dheeraj kumar (Querist)
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11 January 2013 SIR

OUR PUBLIC LIMITED COMPANY HAS RECEIVED AN INVOICE FROM ABC SECURITY SERVICES AMOUNTING TO 22500 TOWARDS CHARGES FOR PROVIDING THREE GUARDS AT OUR FACTORY PREMISES DURING DECEMBER 2012

NOW THE ABC SECURITY SERVICES HAS NOT CHARGED ANY SERVICE TAX THOUGH PAN NUMBER IS MENTIONED ON THE INVOICE

PLEASE TELL WHETHER ANY LIABILITY TOWARDS SERVICE TAX ARISES ON OUR PART DUE TO SERVICES BEING AVAILED BY OUR COMPANY

I WILL BE THANKFULL IF PLEASE TELL EXACT LAW SO WE COULD UNDERSTAND THIS WHOLE CONCEPT

AND PLEASE REPLY SPECIFIC TO THIS CASE ALSO

THANKS & REGARDS
DHEERAJ KUMAR

Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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11 January 2013 1) First the service provider has to register himself under service tax. and mentioning PAN No on the invoice would not be accepted. unless he is exempt from paying service tax. that is upto 1o lacs

2)If the service provider has not charged service tax it doesnot become the liability of the service receiver, except if the service provided are within the scope of reverse charge mechamism

3) Under reverse charge mechanism, in respect of certain services , service receiver also needs to pay service tax if they are body corporate.

dheeraj kumar

dheeraj kumar (Querist)
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11 January 2013 THANK YOU SIR

BUT MY QUERY REMAINS

SERVICE RECEIVER IS PUBLIC LIMITED COMPANY
SERVICE PROVIDER(ABC SECURITY SERVICE) HAS NOT CHARGED ANY SERVICE TAX BUT PAN IS MENTIONED ON INVOICE

INVOICE AMOUNT IS 22500

NOW PLEASE TELL WHETHER ANY SERVICE TAX LIABILITY ARISES ON THE PART OF MY COMPANY(RECEIVER OF SERVICE)

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anurag

anurag (Expert)
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11 January 2013 The answer is NO LIABILITY OF YOUR COMPANY IN THIS CASE.

dheeraj kumar

dheeraj kumar (Querist)
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11 January 2013 THANK YOU SIR
BUT EXPLAIN THE REASONING FOR THAT

AND PLEASE ALSO TELL WHAT IS REVERSE CHARGE MECHANISIM
AND WHEN IT IS APPLICABLE
WHY IT IS NOT APPLICABLE IN OUR CASE

anurag

anurag (Expert)
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11 January 2013 it is assumed that the turnover of service receiver i.e. body corporate is less than 10 lacks and it is not required to take service tax registration.
otherwise as per partial reverse charge rules body corporate has to pay the service tax in cash @ 75% of inr 22500.
thanks