Notification No. 45/2012 - Service Tax dated 7th August,2012 amends existing Notification 30/2012 which governs reverse charge mechanism in India. As per the amendment, following services shall be added to list of reverse charge services.
- Provided or agreed to be provided by a director of a company to the said company.
- Security Services
What is Security Service?
As per notification 46/2012 dated 7th August, 2012, security service means
security services” means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity;”
Ratio of Payment
- For Director’s Services the ratio shall be 100% : 0% i.e. Service recipient company shall be liable to pay service tax.
- In case of Security service, the proportion shall be same as that in manpower service i.e. 75 : 25.
Changes in Service Tax Rules,1994
In concurrence with above amendment, the service tax rules have been suitably amended vide Notification No. 46/2012 - Service Tax dated 7th August, 2012.
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