21 July 2022
Dear Experts, i want to know about the gst complinces for security and manpower services provide in case of company or other than company. 1. What is the GST rate for body corporate or other than body corporate? 2. What is HSN Code For Security and manpower services? 3. Tax invoice invoice format for security and manpower service provider? 4. Reverse charges mechanism and forward charges mechanism under gst for security manpower services under body corporate or other than body corporate? 5. who will deposited the tax like: suppllier or recipient in both case body corporate or other than body corporate? 6. which return and form filling monthly tax complience will follow by security services provider? 7. What is the time limit for payment and received under gst for security services provider body corporate or other than body corporate? 8. what is TDS obligation for security services provider in case of body corporate and other than body corporate ? and also tds threashold limit and tds rate? 9. please explain with me any one example which is covered my all question and also me any pdf file? Thanks & Regards
07 July 2024
Here's a detailed explanation covering your questions about GST compliance for security and manpower services:
**GST Rate**: - The GST rate for security and manpower services is 18%. This applies whether the recipient is a body corporate (company) or any other entity.
**HSN Code**: - The HSN (Harmonized System of Nomenclature) code for Security and Manpower Services is **9 9 8 5 1 2**.
**Tax Invoice Format**: - The tax invoice issued by a security and manpower service provider should include all mandatory details required under GST rules. Here’s a basic format: ``` - Name, address, and GSTIN of the supplier - Serial number and date of invoice - Name, address, and GSTIN/UIN of the recipient (if registered) - Description of services - HSN code of services - Taxable value of services - GST rate and amount (CGST, SGST/UTGST, IGST) - Place of supply (if applicable) - Signature of the supplier ```
**Reverse Charge Mechanism (RCM) and Forward Charge Mechanism (FCM)**: - **Reverse Charge Mechanism**: Applicable when services are provided by an unregistered supplier to a registered person (body corporate or other). The recipient (registered person) is liable to pay GST directly to the government. - **Forward Charge Mechanism**: Applicable when services are provided by a registered supplier to any recipient (body corporate or other). The supplier collects GST from the recipient and deposits it with the government.
**Tax Deposit Responsibility**: - **Body Corporate**: In the case of services received from an unregistered supplier (RCM), the body corporate is responsible for paying GST. For services from a registered supplier (FCM), the supplier deposits GST. - **Other than Body Corporate**: Similar to body corporates, they follow either RCM or FCM based on supplier registration status.
**GST Return and Compliance**: - Security services providers need to file monthly GST returns using Form GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return).
**Payment and Receipt Time Limit**: - Payment for services and GST should generally follow the provisions of the GST law, which includes timelines for issuing invoices and payment due dates as per agreed terms.
**TDS Obligation**: - **Body Corporate**: They are required to deduct TDS (Tax Deducted at Source) if the total value of services exceeds specified thresholds. The TDS rate is generally 2% under GST. - **Other than Body Corporate**: TDS provisions may not apply unless specifically mandated under Income Tax Act for certain payments.
**Example**: - Suppose a security service company provides security guards to a corporate office. The service invoice includes the GST amount at 18%. If the corporate office is liable to pay GST under RCM (Reverse Charge Mechanism), they need to pay GST directly to the government.
For detailed guidance and documentation formats, you can refer to GST guidelines available on the official GST portal (https://www.gst.gov.in/) or consult with a GST practitioner. They can provide specific advice tailored to your business circumstances and provide any necessary PDF files for reference.
CAclubindia
