ASSOCHAM wants Service Tax on “Security” to be scrapped
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has sought scrapping of service tax on security providers as also demanded conferment of industry status on them under Section 801A , 801AB , 801IB and 80IC of Income-Tax Act.
The ASSOCHAM has argued that security agencies be exempted from paying service tax as these are also subjected to various other taxes which include higher import tariffs on security gadgets, still higher excise on security equipment manufactured domestically and number of local levies on movements of such equipment within the State and inter-state.
This amounts to double and triple taxation and it is because of this reason the cost of security to end users is proving to be too expensive to afford, feels the ASSOCHAM.
In a representation forwarded to Ministry of Finance after conclusion of ASSOCHAM's recent National Security Conference, the Chamber has demanded that security agencies should no longer be enlisted under category of service provider and be brought under category of Auxiliary Service Provider to avail tax benefits.
Since, the security agency ensures safety of material as well as of personnel in unsafe times while risking their own life in the process, the industry need to be given infrastructure status on lines provided to industries relating to infrastructure, civil aviation, ports etc.