Service tax applicability

This query is : Resolved

dhaval (Querist)
Follow

27 June 2013 our building had formed co-operative service society and collecting maintenance charges from members holding offices in our building for cleaning and security purposes...
they are collecting maintenance charges with service tax...
Rs. 2 per sq.ft.* 1000 sq.ft=2000+12.36% service tax..

did service tax applicable to co-operative society who proved services to its members only without profit motive...liable to service tax..

CA Vikas Acharya

CA Vikas Acharya (Expert)
Follow

29 June 2013 YES SERVICE TAX IS CHARGABLE.
As a society get registered separately and a different person in eyes of law, hence even if providing service to its member, now taxable under new service tax regime.

Now as per 25/2012 notification
point No. 28: if any service provided is exempt then in that case there is no tax liability.
hence Your society are collecting it correctly,
also they can claim the credit of service tax paid to the security service provider etc. hence the net liability will be reduced and therefore they should give credit of that amount to your respective accounts.