Top Stories Kanpur Security Service Agency Director gets Non-Bailable Warrant on Alleged Service Tax Evasion [Read Order] The warrant was issued after Singh failed to comply with court orders and did not appear before the court despite being summoned twice By Manu Sharma – On May 17, 2024 5:02 pm – 2 mins read Chief Judicial Magistrate of Kanpur Nagar, Uttar Pradesh, Kumud Lata Tripathi issued a Non-Bailable Warrant ( NBW ) against the director of a security service agency, on Thursday, on charges of service tax evasion. The warrant was issued after the accused failed to comply with court orders and did not appear before the court despite being summoned twice.

The next hearing is scheduled for May 30. Notification No. 30/2012-ST dated June 20, 2012, had been amended by Notification No. 7/2015-ST dated March 1, 2015. This amendment shifted the service tax liability for manpower supply and security services from a partial reverse charge mechanism to a full reverse charge mechanism. This change had taken effect from April 1, 2015. Transactions for manpower supply and security services entered into on or after April 1, 2015, will clearly require the service receiver to pay 100% of the service tax under the full reverse charge mechanism. However, scrutinizing this change in light of the Point of Taxation Rules, 2011 (“the POT Rules”), reveals potential challenges for service receivers regarding transactions during the transitional period

The tax department may dispute whether the service recipient should discharge service tax at 75% or 100% for services provided before April 1, 2015, but invoiced or paid for on or after that date. Previously, service tax was payable upon receipt of payment for taxable services provided. However, with the introduction of the POT Rules, service tax was paid on an accrual basis. According to Rule 3 of the POT Rules, the point of taxation was the earlier of the date of raising the invoice or the date of payment. Additionally, if the invoice was not raised within 30 days (or 45 days) from the date of service provision, the point of taxation was the date the service was completed.