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Service tax on payment of gratuity

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 February 2013 One security comapny has submitted a bill to us for payment of gratuity of there employee(security guard) & also added service tax on the same. Whether it is correct to pay service tax on such payment.
If yes then as per which clause or section we can pay.

22 February 2013 I dont think this type of payment like gratuity should be paid by the company to security company in the first place. If u are ready to pay the expenses then the payment would nothing be payment for security and hence taxable under security service.

22 February 2013 Normaly gratuity is applicable after complication of Five years of service of the employee, I dont think that U will be liable for Gratuity because U R not employer,. As far as Service tax is concerned there is no provision in the Rule, Salary ,Wages, Bonus, Gratuity etc etc are not covered.




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