TaxTMI 
TaxTMI 
Reverse charge on security services provided by police to nationalized banks.
05 Sep 2014 
1 Reply 
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Reverse charge on security services: recipient bodies must account for service tax when State Police supply escort services for consideration.
An administrative clarification treats escort/security services provided by State Police for consideration as taxable Security Agency service, not purely sovereign activity, and instructs departmental formations to treat such charges as leviable to service tax. It further allocates liability such that where a body corporate receives security services from the State Police, payment of service tax is to be effected on a reverse charge basis under the statutory provisions governing taxable services. (AI Summary)
An administrative clarification treats escort/security services provided by State Police for consideration as taxable Security Agency service, not purely sovereign activity, and instructs departmental formations to treat such charges as leviable to service tax. It further allocates liability such that where a body corporate receives security services from the State Police, payment of service tax is to be effected on a reverse charge basis under the statutory provisions governing taxable services. (AI Summary)
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.