24 May 2016
We have engaged a security agency and they are providing security guards to our office. Their bills shows as below:
Charges for 2 Persons 20,000 Service Charge @ 10% 2,000 Sub-total 22,000
Service tax @ 14.50% 3,190
Grand Total 25,190
For last one year we have deducted only TDS and paid full amount to the agency. As per the Service Tax reverse charge mechanism we were supposed to remit 100% Service tax amount but instead we paid it to the agency. Going forward we will do reverse charge but for last one year whether we will be liable to pay service tax since we have already paid full amount to agency. Please help.
24 May 2016
1)Generally statutory liability is cannot be shifted so as per RCM ,If statutory liability is of service receiver, he alone is liable.
2)With this reason your service provider may not deposit service tax collected from you to department which is not liable from his part, so first make sure that your service provider deposited tax collected from you to dept. may get a declaration from service provider in this regard which may be used later when department insists you to pay service tax again for this,
3)if dept. not convinced you have no option left except to pay servicetax again so do not make such miscompliances herefrom
24 May 2016
if you are PVT LTD company then service tax you have to pay if service provider is non company. if it is also company then no RCM liability of your company.
CAclubindia
