18 February 2008
Law as it stands now, does not provide any exemption to trusts from payment of Service Tax. If they are getting paid for providing the service, they are liable for payment of Service Tax on the amount, which, they have received from their client and are to be treated as any other .service provider.
Charitable trusts are not covered under Goods Transport Agency services as consignor/consignee and, therefore don’t have to register for service tax. But many trusts are also registered under the Societies Registration Act. If that is the case then you are covered in the above specified categories of consignor/consignee and the person paying the freight would be responsible to get himself registered and to pay service tax
You may kindly evaluate your position in light of the above clarification https://www.caclubindia.com/homepage/DM%20Associate/
18 February 2008
THERE IS NO EXEMPTION FOR TRUSTS from registration UNDER SERVICE TAX ACT . ALL PERSONS(THIS NOMINCLATURE WAS BROUGHT IN SERVICE TAX ACT FROM 2006) WHO PROVIDE TAXABLE SERVICES ( AT PRESENT THE LIST HAS 105 SERVICES AS TAXABLE SERVICES) the gross VALUE OF WHICH REACHES RS. 7 LAKHS P.A HAVE TO REGISTER . THE EXEMPTION LIMIT FOR SERVICE TAX IS RS.8 LAKHS GROSS PER ANNUM. ONLY EDUCATIONAL INSTITUTIONS(READ SEC65(27) AND TESTING OR PATHOLOGICAL LABS(EXPLANATION TO CLAUSE 106 OF SEC65) ARE EXEMPT FROM SERVICE TAX. R.V.RAO
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