As per the recent amendment in the service tax laws , service tax is to be deposited by the payer (person availing the services) for the security services (security guards). If the organisation is not registered under the service tax rules, what is the process of depositing the service tax, will the organisation be exempted or the organisation have to get itself registered with the authorities?
Sachin
I understand security service reverse charge is covered by ‘Supply of Manpower Service’. It may be pertinent to note that the Reverse Charge Mechanism at least on this service is applicable only if the service receiver is a ‘business entity registered as body corporate’. Thus a Trust or a Society would not be treated as a body corporate, hence it would not be applicable to Trusts / Societies.
Sorry for my delayed response.
There is no exemption in sevice tax for what is called as “reverse charge mechanism” and there is no such Rs. 10 lacs threshold. The revenue has been smart enough to capture all small service providers who used to be exempt by not crossing the threshold of Rs. 10 lacs, by making it mandatory for companies availing the services to pay under this mechanism. NGOs have not been getting registered under service tax because of fear of getting hassled in another law and as well as for lack of awareness. Services like that of recruitment consultants/manpower supply, advocates, courier/transportation etc. fall under this category. Only solution is to get registration and deposit the tax to have complete peace of mind.
Rajeev