Hari from Hyderabad.
Hello friends i am having one doubts regarding security services.
we taken some x security services.they are billed total duties amount + service charges @ 10%. but as per ST noms paid 100% off service tax behalf off security services. why they are taken service charge extra 10%....?
From India, Hyderabad
Hello friends i am having one doubts regarding security services.
we taken some x security services.they are billed total duties amount + service charges @ 10%. but as per ST noms paid 100% off service tax behalf off security services. why they are taken service charge extra 10%....?
From India, Hyderabad
Dear Hari,
It appears that you have confused between "Service Tax" and "Service Charge". Former is statutory requirement whereas latter is revenue of the security agency.
Security agencies have to run to their officers, they have to provide uniforms to their guards. There are whole lot of direct and indirect expenses. To manage these expenses, they take service charge. After deducting capital expenses and overheads, their profit comes down to just 2-3%
Thanks,
Dinesh Divekar
From India, Bangalore
7884It appears that you have confused between "Service Tax" and "Service Charge". Former is statutory requirement whereas latter is revenue of the security agency.
Security agencies have to run to their officers, they have to provide uniforms to their guards. There are whole lot of direct and indirect expenses. To manage these expenses, they take service charge. After deducting capital expenses and overheads, their profit comes down to just 2-3%
Thanks,
Dinesh Divekar
From India, Bangalore
Dear Krishnay,
Dont club the agency service charges and service tax . Both are different, as the security is specially charging service charges for providing security service @10% and the service tax paid to Govt is as you are in position of service receiver from service provider. So in query , it is very clear that, the charges they are mentioning in the bills charges taking by agency for providing services. In simple words its profit margin they are taking from the entire amount.
Eswar
From India, Mumbai
Dont club the agency service charges and service tax . Both are different, as the security is specially charging service charges for providing security service @10% and the service tax paid to Govt is as you are in position of service receiver from service provider. So in query , it is very clear that, the charges they are mentioning in the bills charges taking by agency for providing services. In simple words its profit margin they are taking from the entire amount.
Eswar
From India, Mumbai
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AP - Security Service - Min Wages.PDF
SECURITY SERVICE AGREEMENT.doc