Business Mentor, Consultant And Trainer
Gujarat Intrux Limited Head Hr & General
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%
21st July 2015 From India, Bangalore
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.
21st July 2015 From India, Mumbai
There are charges which they charge 1-5% more however you have to negotiate with them and get the final working.
20th December 2018