Service tax applicability

[shyamal roychowdhury]

My client is a security agency who is proiding security to his clients who engages the co . One of the client is publis school who was provided security services oh a negotiated rate . after compleatin of month when bill was raised included therin service tax @ 12.36% on the bill amount , the choolpays the bill for services after deducing tax at sourc and also deducted Service tax amoint with the plea that school is an educational institute & are not liable for service tax payment . We convinced the school that u r paying for services eceived & there is no exemtion notification & payment of service tax is as per rule . They refuse . Can u give us some more detail& notification by which we can ask them to pay service tax .

AI Summary

Security Agency Demands Service Tax Payment from School; No Exemption for Educational Institutions Under Service Tax Rules A security agency provided services to a public school and included a 12.36% service tax in the bill. The school deducted this tax, claiming exemption as an educational institution. The agency argued that no exemption notification exists and requested guidance on enforcing payment. Two respondents confirmed the school's position is incorrect, emphasizing that service tax on security services must be paid and deposited with the government, with no exemptions for educational institutions.