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 .

[Surender Gupta]

As you have stated in the query, the stand of the school authorities are not correct because there is no such exemption available. For this purpose you need to pursue the school authorities accordingly.

[Guest]

the views of the school authorities are not correct. the service tax is on security services which is ultimately tobe deposited in government account.there is no such exemption for any educational institute .

AI Summary

Service tax on security services remains payable despite recipient being an educational institution; no exemption applies Service tax is chargeable on security services provided to a school; there is no exemption notification for educational institutions, and the tax collected by the service provider must be deposited with the government despite the school's attempted deduction of the service tax amount.