Company receiving services from its directors and recipients of security services liable to pay service tax thereon – Security Services Defined
Security service has also been notified under reverse charge on which liability to pay service tax would be partly on service provider (25%) and partly on the service receiver(75%). This provision is applicable when service is provided by any individual, HUF, partnership firm or AOP to a business entity registered as body corporate. Now security service has specifically been defined whereby services of investigation, detection or verification are included.
Service tax (third amendment) rules, 2012 – amendment in rule 2
Notification No. 46/2012-ST, dated 7-8-2012
In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:—Online GST Certification Course by TaxGuru & MSME- Click here to Join
1. (1) These rules may be called the Service Tax (Third Amendment) Rules, 2012.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Service Tax Rules, 1994, in rule 2, in sub-rule (1),-
(A) in clause (d), in sub-clause (i),-
(i) after the item (E), the following item shall be inserted, namely;-
“(EE) in relation to service provided or agreed to be provided by a director of a company to the said company, the recipient of such service;”;
(ii) in the item (F), in the sub-item (b), after the words “manpower for any purpose”, the words “or security services” shall be inserted.
(B) after clause (f), the following clause shall be inserted, namely:—
“(fa) “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;”