Payment of Service Tax

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Dear Sirs, We are the receipient of a security agency service in our HO at Mumbai. The said agency is changing the service tax on the gross value of the bill for the concerned month. Now my queiry is that, the gross amount inclusive of salary of the security guard, other statutory obligations like ESIC, PF, Professional tax LWF etc. Then why we have to pay the tax on these above mentioned ele .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ments. Why not only on the service charges? Please clarify my doubts Thanks, Kiran Pai. - Reply By Surender Gupta - The Reply = Here the liability to pay ESIC, PF etc is on employer. As long as as service is concerned, it is the gross value charged which is taxable. If the service provider is charging value of its services by bifurcating the element of services, it can not absolve from .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the liability of service tax in the name of statutory levies. - Reply By DEV KUMAR KOTHARI - The Reply = I agree with reply of Shri Surendra Gupta. You are availing services of Security Agency. Security agency is employing people as guards/ security man/ suprevisor etc. and deploying them at your office. There is no fixed person to act at your place. The security agency is employer of th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e people deployed. Theefore, gross charges are correctly considered as 'value of security services' provided by security agenncy to you. In case you employ your own people and pay salary to them and incur statutory levies and get only expertise from security agency for supervision etc. then position will be different. In that case, only service charges levied by agency may be taxable service c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... harges. IN-HOUSE services can be used to save service tax. - Payment of Service Tax - Query Started By: - kiran pai Dated:- 24-6-2011 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X