Please guide me in following issue;-
Whether a Trust (registered under 12A of Income Tax Act) receiving the service of security, shall be responsible for the Service Tax under Reverse Charge mechanism? or if Trusts are exempted then under which section?
Thanking you all in anticipation
Services by an entity registered under section 12AA of income tax act by way of charitable activity is exempt from servcie tax under mega notification no. 25/2012 section 12A is not covered under exemption of service tax.
If you are a receiver of security services, you are liable to service tax to the extend of 75% of the tax payable under the reverse mechanism notwithstanding that you are a charitable entity.
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