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This is an archive article published on November 25, 2007

With gain, some pain

Given that the CISF charges its clients-who range from airports to industrial installations-for its services...

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Given that the CISF charges its clients8212;-who range from airports to industrial installations8212;for its services, it is perhaps not surprising that it pitches itself as the only 8220;profit-making8221; police outfit. While this makes sound economic sense, the CISF thought it could extend the argument to tell the Finance Ministry that it need not play a role in clearing personnel increases as new recruits would anyhow be compensated by the client. For months there was silence on the part of the Finance Ministry8212;until the CISF got a letter from agencies concerned asking the force to pay service taxes. The logic was simple: the CISF rendered a service for which it was paid by the client, so why should it not pay service tax? A foxed CISF is busy trying to justify tax exemption on the ground that it is a government agency providing a public service. But many are wondering whether this is not a clever repartee from the Finance Ministry.

 

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