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Service tax shock for CISF

July 08, 2009 13:37 IST

The CISF, which has now been brought under the ambit of service tax, is finding hard to come to terms with the decision even as an officer of the force termed the move as 'demoralising.'

While top officials of the force, which protects the country's vital installations like nuclear plants and airports, say the service tax is to be paid by its clients and not by CISF and hence there is nothing to be worried about, middle level and ground personnel say they are upset on being 'compared to guards of other private security agencies'.

Finance ministry sources said the Central Industrial Security Force will have to pay service tax as it comes under the category of 'security agency services' of the Finance Act of 1994 under which only private security agencies are currently paying tax.

"This new rule is very demolarising. We are a paramilitary force which functions completely under the control of the hme mnistry. We don't provide security services but do our duty as mandated by the government. We are not like the guards that you find in offices and houses," an officer of the force said.

Service Tax Authority sources said the force is yet to register with them and hence notices have been sent again asking the 1,20,000 personnel strong force to do so soon.

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