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         SECURITY AGENCIES/ DETECTIVE AGENCIES
   
 
Q.1  What is a Security Agency?
Ans. 
 
 
"Security agency" is a commercial concern engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel.
Q.2  What is the taxable service in case of Security agencies?
Ans. Taxable service is a service provided to a client, by a security agency in relation to the security of any property or person, by providing security personnel or otherwise and includes the provision of services of investigation, detection or verification of any fact or activity.

The ambit of the term security agency is wide enough to include not only agencies rendering services of providing security but also detective agencies, which are providing confidential services in respect of say, financial credibility of any person, trade mark/ copyright infringements etc.
Q.3 What is the value of the taxable service in case of services provided by Security Agencies?
Ans  Value of the taxable service in relation to the service provided by a security agency to a client, is the gross amount charged by such agency from the client for services rendered in connection with the security of any property or person, and includes services of investigation, detection or verification of any fact or activity including services of providing security personnel.
Q.4 Is service tax leviable on the entire amount charged to the clients to whom security guards/ personnel have been provided? In many cases, the bulk of the charges represent salary to the employee( at least the minimum wages prescribed under the law), employer's ESI and EPF contribution, income tax deduction at source, payment towards professional tax and labour welfare fund and other non statutory charges such as bonus, leave, uniforms, incidental expenses and other administrative and miscellaneous expenses. Is Service Tax leviable even on such charges ?
Ans Yes. No abatement from the amount charged to the client for services rendered is available for purposes of computing the service tax liability. Statutory levies of the kind like EPF, ESI contribution towards labour welfare fund etc. are required to be borne by all types of employers and not only security agency. Such statutory levies have no direct co-relation with the services rendered to the client (in as much as the same arise out of employer-employee relationship) and are not specifically relatable to the services rendered to the client. Therefore, no abatement in respect of the such statutory levies is admissible for the purposes of computing the service tax liability.
Q.5 Are any services provided by the Security Agency exempted from payment of Service tax?
Ans.  Yes, the services provided by the security agency in relation to the services of providing safe deposit lockers or safe vaults for security of movable property are exempted from payment of service tax.
Q.6 When a Private Security Service also provides labour or manpower for activities not related to security services, whether such service is liable to service tax ?
Ans. The Security Agency merely supplying labour and manpower for any purposes other than providing security services is not liable for service tax since it does not fall under the category of security service, which is irrespective of the fact that they may get covered as manpower recruitment agencies.
Q.7 The Security Agencies, sometimes during the course of their business, undertake services of collection of dues from loanees, credit card holders, etc. Are these services liable for Service Tax ?
Ans. Taxable services rendered by the scope of security agency is restricted to a service provided in relation to the security of any property or person. The activities of collection of dues, etc. do not fall in the ambit of providing security to any property or person. Therefore, these activities are not covered by the levy of Service Tax.
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