Information required for service tax applicability

[Asked by Guest]

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

Service tax liability: providers must register and pay tax on receipts even if clients refuse to reimburse.
Service providers must register and pay service tax once taxable services turnover reaches the threshold; liability exists irrespective of client reimbursement. The provider must issue invoices showing service tax and, if tax is not collected, treat receipts as inclusive of tax and compute tax accordingly. Notification No. 6/2005 exempts small service providers based on turnover of taxable services (previous year) and amount received (current year); exceeding those limits terminates the exemption and obliges charging tax on invoices.