Service tax on security agency service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2013 Dear Experts,

Please clarify as per Service Tax Notification No. 30/2012.

Whether the service provider has to Pay the 25% of Service Tax from his own pocket or by collecting the same from the Service Receiver.

OR

Is Service Receiver Has to pay 25% of Service Tax through the Service Provider & 75% directly.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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07 May 2013 service provider will charge 25% from the service recipient on bill and will deposit the same.
service recipient will deposit service tax on 75% of the service value(mentioned on bill)

ultimately the bill the whole 100% tax is to be paid from the SR's pocket,
earlier 100% deposit by SP
now 25% by sp and 75% by sr, though going from the pocket of SR as always.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2013 Dear Sir,

Thanks for Your reply.

Today I went to Service Tax Department to clarify this doubt and met Our Group Superintendent of Service Tax.

He advised me not to pay service tax to the service provider. According to him "Service Provider Has to Pay his portion(25%) of Service Tax from his pocket and Service Receiver has to Pay his portion(75%) from his pocket"

I don't know how far its right.

If Your are right, Up to which extent the Service receiver(Manufacture) can avail CENVAT Credit from this 100%.

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CA Vikas Acharya

CA Vikas Acharya (Expert)
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07 May 2013 total 100%
25% on the basis of invoice and 75% on the basis of Challan of tax he deposited.

whatever i wrote, have written after a lot research done though I personally don't know this SCE, but many of them many times contradict each other.

it may be possible that you do contract with the service provider that we will not pay the tax of 25% and will be inclusive of amount paid, but this is contract between both the parties but not the general law.