Collection of service tax thru maintenance bill ?
anil a ghaisas
(Querist) 03 December 2016
This query is : Resolved
Sir,
Lawers Club Of India,
Sir,
I am member of this club. As per my knowledge the Co.Op. Chs is not supposed to collect Service Tax from members thru Maintenances Bill..
Buylawas does not provide this recovery and therefore it is illegal to revover this tax from members every month.
In our society secretary is planning to recover this tax thru maintenance bill .
In view of the above I wanted to have your opinion on the Issue of SERVICE Tax collection. kindly let me know , whether it is legal to make such recovery from members every month.
Regards
A.A GHAiSAS
4th December, 16
Siddharth Dev
(Expert) 04 December 2016
Depends upon transaction amount
Dr J C Vashista
(Expert) 04 December 2016
Cooperative Housing Societies do not charge any service tax from members, do you pay?
If so, what is the service provided by Managing Committee which attract service tax? Which state do you belong?
Whether the service (where service tax is stated to be levied) fall in the Bye-Laws adopted by CHS, State Cooperative Societies Rules and Act?
Hemant Agarwal
(Expert) 04 December 2016
1. IRRESPECTIVE of any Bye-Laws of any coop. Society, Service Tax is leviable if Service Charges exceed 5000 per member (First time, one time of 10 Lakhs, aggregate per annum of all members).
2. Legally there is no excuse to say that "IF" the Bye-Laws do not mention "Service Tax" THEN the members are exempt from Service Tax, which is very much leviable (as applicable) to ALL coop. Societies (across India). Bye-Laws have no force Law.
Keep Smiling .... Hemant Agarwal
VISIT: http://www.maharashtra-society-help-forum.com
Rajendra K Goyal
(Expert) 04 December 2016
As per decision of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) after a case involving Tahnee Heights, a residential society in Nariman Point observed:
Under this new rule, if you are a flat-owner or owner of a commercial space within a housing society registered under the Maharashtra Co-operative Societies Act, you’re exempted from paying service tax against the society maintenance amount charged every month.
http://groups.commonfloor.com/blog/service-tax-on-maintenance-exempted-for-housing-societies-in-maharashtra/
Also visit: TOI news item dated: Jan 14, 2015, 12.58 AM IST at following link:
http://timesofindia.indiatimes.com/city/mumbai/Mumbai-housing-societies-spared-service-tax/articleshow/45876822.cms
