As per new reverse charge mechanism, if Service provided by Security agency (Proprietor) to a company then, service tax laibility is on service reviever is 75% and on proprietor it is 25%.
But my question is that, what if the proprietor has charged 100% service tax in invoice?? Whether the company is liable to pay 75% of Service tax or not? if yes then, isn't the total tax will be paid more than 100% to the govt revenue. The service reciever should have been waived in this case..
Or we have to ask to the service provider to change the Invoice bill and charge 25% service tax only..
09 September 2012
The Service Provider should make the disclosure 12.36% less paid by Service Provider and the Balance 75% should be payable by service Receiver
CAclubindia
