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.
Clarification on Service Tax Liability for Security Services: Full Tax for Companies, Partial Reverse Charge for Others. A company inquired about its liability to pay service tax when availing security services from agencies, particularly when payments are made after deducting TDS. The query sought clarification on whether the ownership structure of the security agency, individual or company, affects this liability. One respondent clarified that if the service provider is a company, it can charge the full service tax on its invoices. Otherwise, a partial reverse charge mechanism applies. Another respondent questioned the relevance of TDS deduction in this context, affirming the first respondent's explanation. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
