Information required for service tax applicability

[Avik Mukherjee]

Hi All

I have a firm that provides security services (security guard, supervisor, houskeeping etc) to organisations on contractual basis. I am planning to register my organisation for serivce tax. But i am facing one problem that some of the organisations who are using my services are not willing to pay me service tax, so my question is am i liable to pay the service tax of the gross ammount which i get from these organisations, or i am liable to pay only the ammount that i get for the organisations willing to give me service tax.

Is there any liability on the organisation using my serivces that they have to pay me service tax if i charge them or they can refuse to pay also.

looking for your guidance

Thanks

Avik

AI Summary

Security Firm Must Register for Service Tax Once Turnover Exceeds Rs. 10 Lakh, Regardless of Client Payment Issues. A firm providing security services is seeking guidance on service tax registration and payment obligations. The firm faces reluctance from some clients to pay service tax. Responses clarify that service providers must register for service tax once their turnover exceeds Rs. 10 lakh and are responsible for collecting and remitting the tax, regardless of client payment. If clients refuse to pay, the service provider must still remit the tax, treating the gross amount as inclusive of service tax. The exemption under Notification No. 6/2005 applies if the previous year's service value did not exceed Rs. 10 lakh.