Service tax on security charges??

This query is : Resolved

SANJAY (Querist)
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04 September 2012

Dear members,

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..

Please clarify me..

Thanks in advance..

CA Suresh Jain

CA Suresh Jain (Expert)
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05 September 2012 The service provider should charge the amount of service tax payable by him and therefore, ask service provider to change his bill.

You have to pay the service tax of your part in cash

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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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

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