Service tax on building fund collection
A.R.JOSHI
(Querist) 12 January 2012
This query is : Resolved
A club registered under the society Act with a intention to organise, conduct,encourage sports activity for the benefit of the members of the club. The club has collected the building fund from its members which was shown in the Balance Sheet as building fund a/c and the building work is going on.Whether the building fund so collected from its members is liable for service tax. If no please let me know the case laws for our reference.
Sailesh Kumar Shah
(Expert) 12 January 2012
no liability for service tax.
concept of mutuality applies here.
Raj Kumar Makkad
(Expert) 12 January 2012
Yes, No service tax liability arises in such matter.
Deepak Nair
(Expert) 13 January 2012
No. members are not liable for service tax.
soumitra basu
(Expert) 17 January 2012
In service tax and Sales Tax the concept of mutuality does not arise at all. However this collection has no relation with service so service tax will not be applicable.
