Service tax liailty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2016 Hi

I am right now handling two firm one Pvt Ltd Co. and new other one partnership firm and here we have hired security agency which owned by proprietor (individual) and registered in service tax department and produce service-tax invoice.

My question is based on reverse tax mechanism in Pvt Ltd. Co. I had paid full service tax amount to department as service receiver.

but my partnership firm is not registered in service tax in this case service tax amount of service receiver part paid to whom or how.

- And security agency asking for service-tax payment proof what I should to do.

please help me out and guide, agency always produced service-tax invoice for both concern.

CA Chandni Saluja

CA Chandni Saluja (Expert)
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20 May 2016 The small service provider exemption of Rs 10 lakhs not available when tax is payable under reverse charge. Tax should be paid under service tax registration number of service receiver. Therefore, you have to get registration of partnership firm.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2016 Sir,

I have to register partnership firm as a service receiver category, am I right?

or

other way is terminate the service of security agency and hire a private ltd security agency for partnership firm then no tax liability will be create.

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CA Chandni Saluja

CA Chandni Saluja (Expert)
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20 May 2016 Yes..right..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 May 2016 No reverse charge applicable to partnership firm. Service tax payable by service provider and claim it from the firm.

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2016 Sir,

That mean I have to pay full amount payment along with service tax to vendor in case of partnership firm.

Here is service provider is a security agency which is registered in service tax and always raised bill with service tax amount.

I am service receiver in two firms
1- for Private limited company
2- for Partnership firm.

in Pvt limited company I am not paying service tax amount to vendor as per rule 2015 but

No idea what to do in case of partnership firm here service provider and receiver both are partnership firm who will liable to pay tax and how?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 May 2016 Yes, you have to pay the full amount including service tax to vendor in case of firm.

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