Query on Service Tax

[GAURAV MAKKAR]

Dear All

 

Pls help me solve this problem.

 

One of my clients, a cooperative society is charging Rs.2000 per month as maintenance charges along with

electricity & generator charges at Rs.5 per unit & Rs.10 per unit resp. Normal bill per flat per month is Rs.4000.

 

There is also Transfer fee of Rs.90000 everytime owner is changed. Community Hall, swimming, gym charges etc.

 

WHETHER SOCIETY IS LIABLE TO PAY SERVICE TAX U/S 65(105) (zzze).

 

Govt. has notified (No.8/2007) that RWAs charging Rs.3000 per month are not liable.

In this case society's maintenance charges are Rs.2000 but electricity & generator charges make it above Rs.3000/-.

 

Kindly suggest/clarify.

 

Thanks & Regards

Gaurav Makkar

[arpit gupta]

Dear gaurav,

As per my knowledge and reference there shall be a liability of service tax as:

1. Service tax is charged on Gross Value Charged.

2. As per notification no. 8/2007,the value of total consideration received from an individual member by the association for providing the services should not exceed Rs.3,000/- per month,

3. The  amount charged by the society to its members includes some profit element and is in the nature of service provided to its members.

Therefore in my opinion there shall be a liability of service tax.

--
CA ARPIT KUMAR GUPTA

9810192355

[jatinder singh]

sec 65(105)(zzze) says  "any service provided or to be provided,,  to its members, by any club or association in relation to provision of services, facilities or advantages for a subscription or any other amount;

-- liability of service tax exists

CA JATINDER SINGH
MOB NO 09896942564

[GAURAV MAKKAR]

Thanks

[himanshu malhotra]

brother i am having one query regarding service tax 

As per budget announcement service tax rate from 01st April,2012 is 12% 

What rate will be applicable , if i will raise bill on 15th of April,2012 for march,2012 concurrent audit   

Is it will be 10% as the rate in force in march,2012 or 12% the rate in force on the date of billing i.e 15th of April,2012 

--

With Regards

 

CA.Himanshu Malhotra

Partner

Amit Ray & Co.,

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