Service Tax on CISF - Retrospective Exemption
THE security agency's service provided by CISF is liable to service tax under Section 65 (105) (w) read with Section 65 (94) of the Finance Act, 1994. But initially for a considerable period there was lack of clarity about the leviability of service tax on the security services provided by CISF for the reason that CISF is a government agency, and also because the recipient of the said services are Public Sector Undertakings in which Government has a stake; Later it was decided that the services provided by CISF to Public Sector Undertakings and State Governments are liable for payment of service tax under the "Security Agency's Service" and CISF thereafter started paying service tax with effect from 01.04.2009.
Now, the Government has exempted the taxable service provided, to any person by Central Industrial Security Force in relation to 'Security Agency's service' during the period 16.10.1998 to 31.03.2009 from the whole of the service tax leviable thereon under section 66 of the Finance Act, 1994.
AD HOC EXEMPTION ORDER No , dated: July 01, 2011
PLEASE also see
1. – 06.10.2008
2. CISF, WHETHER LIABLE TO PAY SERVICE TAX?