Mahesh Balkrishna Chavan (Asst Manager Excise) (48 Points)
11 August 2012
SERVICE TAX NOTIFICATION NO 36/2004 -ST (DATED 31/12/2004) 20/06/12
Wef 01.07.12
as per above notification liablity of service tax for manpower supply serivces is partially (75%) on the shoulder of service receiver in this connection I would like to know security services is comes under manpower supply services or not.
Thanks in advance
nilesh
(Indirect Tax)
(82 Points)
Replied 11 August 2012
YES, security services is comes under manpower supply
Regards
Nilesh
Anandan
(HOD accounts)
(502 Points)
Replied 11 August 2012
Security Services also Under Reverse Charge
Notification No.45/2012-ST,has further amended Notification No. 30/2012-ST bringing Security services also under Reverse Charge Mechanism. Now the Security Agency has to pay 25% and service recipient has to pay 75%.
As per the notification, security services by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory is only covered under the Reverse Charge Mechanism.
So, if a Security Service Agency is providing the service to a person other than a body corporate, the reverse charge mechanism will not apply.
That means up to and inclusive of 6th August, the service provider is liable to pay on full Service tax. From 7th August onwards, he is liable to pay 25% of service tax and a Body Corporate has to pay 75% service tax.
Regards
Anandan.s
CAclubindia
