Section 9(3) Reverse Charge on Security Service

Last updated at Dec. 16, 2024 by

Many Companies hire Security Guards in their offices
These Security guards normally do not work on payroll of company
They work on contract under Agency
In this case, Company Pays money to Agency and Agency pays Salary to Security Guard
 
  In this case 
  • Service Provider is Agency
  • Service Receiver is Company
  • Service Provided is Security Service
 
In this case, Reverse charge is applicable on Amt paid by Company to Agency if Service Provider is a Non Co and (Proprietorship or Partnership) and Service Receiver is a Company

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Question 1

Suppose AK Pvt Ltd provides Security Guard Service to Infosys Ltd

Should Infosys deposit GST?

View Answer

Question 2

Suppose AK Enterprises provides Security Guard Service to Infosys Ltd

Should Infosys deposit GST?

View Answer

 

 

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Transcript

Section 9(3) Reverse Charge on Security Service Security Guard Service Provided by any person other than body corporate to Registered Person located in Taxable Territory is covered in Reverse Charge Note 1. If Service Guard Agency is a Company, Then Normal Charge applicable 2. If Service Receiver is Unregistered, then also Normal Charge applicable 3. Rule applicable from 1 Jan 2019 & Rate Applicable is 18% Registered Person located in India Security Service Security Guard Agency (Non Co) Deposits GST teachoo.com Security Service Agency Non Company Company Service Receiver is Registered Normal Charge Service Receiver is Unregistered Reverse Charge Normal Charge teachoo.com

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.