Service tax reverse mechanism

This query is : Resolved

Mantu Agarwal (Querist)
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11 September 2013 Dear Expert,

We (public co) received service of manpower from a security agencies. The security agency is not registered under service tax as their turnover is below Rs. 10 Lakh hence they are not charging service tax i.e 3.09% (25% of 12.36%).

Now my query is whether I am liable to pay service tax @ 9.27% or not ?.

Pls resolve.

Thanks
Mantu Agarwal

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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11 September 2013 Yes you being a company have to discharge your liability of 9.27%.

Mantu Agarwal

Mantu Agarwal (Querist)
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12 September 2013 Hello Madam,
Thanks for reply.

Can you please provide me any link or source where I can get all this thing.

Thank you.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 September 2013 Service receiver liable for only his part and not entire amount, even if service provider does not charge his portion of service tax.

Check out below link--

http://www.dateyvs.com/faqs-on-reverse-charge-in-service-tax/