Service tax notification no 36/2004 -st (dated 31/1

YES, security services is comes under manpower supply

Regards

Nilesh

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