Taxation of accomodation and guest house service

This query is : Resolved

dipesh parmar (Querist)
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30 January 2014 Good afternoon
i have a client who runs resorts and also provides food service at the place
it is under abatement scheme and liable to pay 7.42% as service tax

it has been charged at 12.36 % as service tax for its security charges
the party has paid 25% as service tax and asked my client to pay the remaining 75%

so i want to knw whether we are liable to pay the tax and if yes how much

thanks

Ajay Raghatate

Ajay Raghatate (Expert)
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31 January 2014 Yes, as per Reverse Mechanizme, for recipient of security service is liable to pay 75 % & service provider liable to pay 25%.
Pls refer the link.
http://www.dateyvs.com/faqs-on-reverse-charge-in-service-tax/