Payment of service tax by CISF on taxable services provided -reg - Service Tax - DOR UO F. No. 345/1/2007 - TRU

Payment of service tax by CISF on taxable services provided -reg Ministry of Finance Department of Revenue DOR UO F. No. 345/1/2007 - TRU Dated: August 19, 2008 Subject: Payment of service tax by CISF on taxable services provided -reg. Reference is invited to Ministry of Home Affairs U.O. No. II - 27011/23/2007-PF.II dated 16th June, 2008 regarding levy of service tax on security services provided by CISF and the suggestion to shift the liability to pay service tax from CISF to the recipient of service. 2. The matter has been examined carefully. As a general principle, service tax is required to be paid by the service provider, for the amount received during the month, on the 5 th day of the following month. Service tax return is required to be filed once in six months. For the purpose of payment of service tax, service tax registration can be taken either at a single location or at more than one locations depending upon the accounting system and the convenience of the tax payer. Service tax paid is available as input credit to the consumers of service and thus the tax paid is only a pass-through. 3. Government departments and organisations under Central and State Governments including CISF are deducting TDS on payments made to suppliers of services and on wages and salaries paid to staff and deposit the same with the Income Tax department alongwith details. Payment of service tax also requires a similar system and procedure. 4. It is, therefore, appropriate for CISF, being the service provider, to deposit the service tax on taxable services such as security service, consulting service provided instead of asking the recipient to deposit the service tax. 5. CISF may be advised to take appropriate steps to discharge the service tax liability. For any further guidance on matters relating to payment of service tax, Commissioner of Service Tax, Delhi may be approached. 6. This issues with the approval of Member (Service Tax). (Nishit Goyal) Officer on Special Duty (TRU) Shri Ranjanesh Sahai, Director (Police Finance) Ministry of Home Affairs