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
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.
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
CAclubindia
