Tds and service tax related query in one case

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2014 Dear guys, I have one query related to TDS & Service tax on Security company.

suppose one security company provide to another company, business entity a security guards, then how shall impose and calculation of TDS and service tax?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 March 2014 Reverse charge is applicable when security service is provided BY an individual, HUF or partnership firm TO a COMPANY.

In that case, partial reverse charge is applicable. 25% liability is to be charged by the service provider and 75% is to be paid by the service recipient.

CBDT has issued circular 1/2014 which provides that TDS will NOT be deducted on service tax component.

Accordingly TDS will be deducted only on the gross service charges.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2014 Thank you very much sir to clear doubt.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 March 2014 You are welcome. You should use the thanks button to convey your thanks.