Reverse charge on security services provided by police to nationalized banks.

[VINOD KUMAR]

Dear expert please reply whether service tax under reverse charge is payable by nationalized banks on security services received from haryana police during the year 2009-10 to 2013-14.

AI Summary

Nationalized Banks' Service Tax Liability on Security Services from State Police Clarified for 2009-2014 Period A query was raised about whether nationalized banks are liable to pay service tax on security services received from the Haryana police between 2009-2014 under the reverse charge mechanism. The response clarified that from July 1, 2012, only corporate bodies receiving security services from state police are liable to pay service tax on a reverse charge basis. Before this date, the state police department was responsible for the tax. A government circular clarified that escort services provided by state police are taxable under the 'Security Agency service' category, as they are not considered statutory or sovereign functions.