Service Tax - Escort Charges Collected by Police - Taxable - CBEC
IT was just a day before that we reported about the Mumbai Service Tax notice to Mumbai Police. Now, we have a Board instruction that escort charges collected by State Police from banks for escorting cash are taxable under 'Security Agency service'.
Board has clarified that the service provided by the State Police in providing escort service as mentioned above for a consideration is leviable to service tax under 'Security Agency service [Section 65(105)(w) of the Finance Act, 1944].
Board wants all formations to safeguard revenue accordingly.
But why is the Board shy of making such important instructions public? These instructions were issued in May and we could get it only now.
CBEC F. No. 137/131/2010 - CX. 4, Dated: May 20, 2011