Security Service under reverse charge mechanism

[Pradeep Kaushik]

Dear Sir/s,

security service was included under reverse charge mechanism.

But, if the security service is being provided by a pvt. Ltd. Co.  to an another Pvt. Ltd. Co., then who is liable to deposit the service tax, Service Provider or Service Receipent.

If, service receipent is liable to deposit the Service Tax, what will be the Point of Taxation and Rate.

Please clarify.

Best Regards.

Pradeep Kaushik

AI Summary

Reverse charge applicability: security services by a private company make the provider liable; recipient not liable; POT follows provider rules.
Reverse charge does not apply where security services are supplied by a private limited company to another private limited company; the corporate service provider is liable to collect and pay service tax, the recipient may avail cenvat credit, and the provider's point of taxation is the earliest of advance receipt or the invoice date where invoiced within thirty days of service completion, with the rate prevailing at that point.