A pvt. ltd.co. receiving security services and all service tax i.e. 12.36% charged by the service provider but under reverse charge the said co. also liable to pay service tax.
08 January 2014
if you are receiving services from company ,reversecharge not applicable and they have to collect full 12.36% of service tax from you and you dont need to pay any from your pocket to govt. . . if you are received services from other than company reversecharge applicable and you have to pay 25% of servicetax from your pocket directly to government and balance 75% of service tax required to pay to service provider . . so if you received service from other than company but claimed full service tax in his invoice . . even though you have paid full service tax to your service provider dept may demand you to pay again as you are primarily liable here . . so pay to service provider only 75% of service tax and for the balance 25% of service tax dont pay,,better ask them to send a proper bill claiming 75% of service tax only . . and you pay 25% of service tax from your pocket