SERVICE TAX ON SECURITY SERVICE.

[SANJEEV JADHAV]

Dear Sirs, I have one issue regarding payment of service tax on Security Service. Issue is that my relative is providing security service to Banks and Educational Institutes. Recently as per Notification No. 10/2017 dated 08.03.2017, exemption of service tax is granted only up to Education up to H.S.Ed. Cess. My query is that :-

1] If any service provided by Proprietor firm to Educational Institutes providing education both higher secondary and above higher education? In this case who should have to pay tax ? Either by Service Provider or Educational Institute ?

AI Summary

Reverse charge mechanism: recipient educational institutions must pay service tax on security services supplied by external providers.
Security services supplied to educational institutions offering education beyond higher secondary are excluded from the auxiliary-services exemption; therefore where such services are provided by individuals, proprietors, HUFs or partnership firms to an educational institution not covered by the exemption, the recipient is liable to pay service tax under the reverse charge mechanism as set out in the relevant notification.