PAYMENT OF SERVICE TAX, Service Tax

[S.C. WADHWA]

A company is availing services of security guards from the security agencies which is furnishing us bills towards security guards services provided to us.

The bill furnished to us is inclusive of service tax @ 12.36%.

Please tell us whether we as a company are liable to pay service tax if we are making payment to agency after deducting tds on such bills.

Please advise.

Please also advise whether it matters whether the security agency is owned by an individual or company.

Posts / Replies

[Pradeep Khatri]

If the service provider is a company then it can charge the service tax 100% on its invoice/bills/challans otherwise partial reverse charge mechanism will be applicable.

[NEERAJ KUMAR, RANCHI]

I dont understand why you are deducting TDS, is there any provision such provision in service tax. Rest as Mr Khatri stated above is absolutely correct.