Hi Mr. Gaurav,
Per your info, as you have > 10 Lacs PA , service tax is applicable and have been rightly pointed out.
On your query w.r.t to member contribution being < Rs 5000 Per member / Month, it is "Exempted from Service Tax".
For detailed notification on exemption , please read the following circulars and your query is addressed :
Circular No.175 /01 /2014 - ST
Notification No. 25/2012-Service Tax
I am reproducing specific details from the above two :
Circular No.175 /01 /2014 - ST :
"
Exemption at Sl. No. 28 (c) in notification No. 25/2012-ST is provided specifically with reference to service provided by an unincorporated body or a non-profit entity registered under any law for the time being in force such as RWAs, to its own members.
However, a monetary ceiling has been prescribed for this exemption, calculated in the form of five thousand rupees per month per member contribution to the RWA, for sourcing of goods or services from third person for the common use of its members.
If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members.
"
b.
Notification No. 25/2012-Service Tax
"
.....the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services
28. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution -
(a) as a trade union;
(b) for the provision of carrying out any activity which is exempt from the levy of service tax; or
(c) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;
"
Hope the above helps.
Balaji Srini FCA., LL.B.