Place of provision of service
This query is : Resolved
11 May 2013
My query is
We are a body corporate registered in India.We have made a contract with a body corporate to provide security staff who will deliver their services outside india.
My com. has made a contract with each security person to provide services outside india.
My Question 1.
Whether the services provided by these Security Persons outside india(Through Intermidiary i.e. me)will attarct Service Tax in the hand of Security Perosns.
Question No.2
If answer of first question is YES, than whether Reverse Charge will applicable on my company?
Pls reply anbody expert.
We are a body corporate registered in India.We have made a contract with a body corporate to provide security staff who will deliver their services outside india.
My com. has made a contract with each security person to provide services outside india.
My Question 1.
Whether the services provided by these Security Persons outside india(Through Intermidiary i.e. me)will attarct Service Tax in the hand of Security Perosns.
Question No.2
If answer of first question is YES, than whether Reverse Charge will applicable on my company?
Pls reply anbody expert.
12 May 2013
Dear Saurabh,
When the service provider as well as Service receiver is in India , the service provided anywhere in the world , it will be taxable in India as per Rule 8 of Place of Provision Rules 2012.
So service provided by security persons to you are taxable in India.
Further No reverse charge is applicable when Service receiver as well as Service provider is Body Corporate.
Arvind 9322368699
When the service provider as well as Service receiver is in India , the service provided anywhere in the world , it will be taxable in India as per Rule 8 of Place of Provision Rules 2012.
So service provided by security persons to you are taxable in India.
Further No reverse charge is applicable when Service receiver as well as Service provider is Body Corporate.
Arvind 9322368699
13 May 2013
I want to add that partial reverse charge is applicable in case of security services.
13 May 2013
Thanks Arvind Ji.
I do agree with your opinion.But in this caser partial reverse charge will be applicable. As the Security Persons are receiving the amount from Body Corporate i.e. from my opinion.
Please also enlight on the matter that whether there is any scope to get the refund from the department. As my company has paid the tax on security persons billing under reverse charge mechanism.
I do agree with your opinion.But in this caser partial reverse charge will be applicable. As the Security Persons are receiving the amount from Body Corporate i.e. from my opinion.
Please also enlight on the matter that whether there is any scope to get the refund from the department. As my company has paid the tax on security persons billing under reverse charge mechanism.
13 May 2013
In that case, I suggest you to not pay service tax again under reverse charge. Same transaction cannot be taxed twice.
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