Difference between Security Services provided by Private Limited Company or Body Corporate and Non-Corporate & Non-Body Corporate.
Overall, the key differences between Security Services provided by Private Limited Company or Body Corporate and Non-Corporate & Non-Body Corporate Security Services are in ownership, liability etc are explained in tabular form :-
| Criteria | Security Service Provided by Private Limited Company or Body Corporate | Security Service Provided by Non-Corporate & Non-Body Corporate | |
|---|---|---|---|
| A] Basis Constitution and Structural Differences | |||
| Ownership | Owned and Operated by Private Limited Company, LLP or Body Corporate | Owned and Operated by Firm, Proprietorship or AOP etc. | |
| Liability | Limited Liability | Liability is not limited | |
| Legal Entity | Separate Legal Entity | No Separate Legal Entity | |
| Level of Regulation | Highly Regulated | Not Regulated | |
| Services offered | Offer a wide range of security services to clients, including surveillance, access control, and security personnel. | May offer a limited range of security services due to limited resources. | |
| Regulation | Subject to regulation by the Companies Act, 2013, LLP Act 2008 and other relevant laws and regulations. | May not be subject to the same level of regulation as private limited companies or body corporates. | |
| Audit Requirement | There will be specific Audit Requirement under governing Statute apart from taxation laws. | There will be no specific Audit Requirement under governing Statute apart from taxation laws. | |
| Succession | Perpetual Succession | Death of Owner can lead to windup of the Business. | |
| B] On the basis of Taxation Law | |||
| Income Tax Rate Applicable | Company: - 26.00% LLP :- 31.20% (Including Education cess excl Surcharge) |
Firm: 31.20% Proprietorship: As per Slab Rate applicable to individual. (Including Education cess excl Surcharge) |
|
| GST on Supply of Services to registered person |
Subject to Forward Charge |
Subject to RCM |
|
| If a Proprietary concern or a firm provides security services to a registered person then GST is applicable on RCM basis on the registered person but if a private limited company/LLP/Body Corporate provides such services the same will attract forward charge instead of RCM. | |||
| GST on Supply of Services to unregistered person | Subject to Forward Charge | Subject to Forward Charge | |