Whether service tax is applicable for trust
This query is : Resolved
31 December 2013
we have formed one trust for general public utility, we have received some income as sponsorship, service tax applicable for that income?
31 December 2013
no. you are not required to register or pay service tax either under normal provisions or under RCM, provided that you are registered with income tax department under section 12A/12AA.
01 January 2014
As per point 4 of Mega exemption notification 25/2012-Service Tax:
If charitable trust registered with income tax authorities under section 12AA the Income Tax Act, 1961 and carry out‘specified charitable activities’ then such activities would be exempt from service tax..
If charitable trust registered with income tax authorities under section 12AA the Income Tax Act, 1961 and carry out‘specified charitable activities’ then such activities would be exempt from service tax..
01 January 2014
If you have received sponsorship from body corporates, then they are liable to pay service tax under reverse charge mechanism.
01 January 2014
if party given full amount including service tax, what do in this situation?
01 January 2014
Please refer to parakh bhai's comment. The service tax shall be paid by the entity who gave sponsorship. What the entity has done is wrong. You better refund the service tax amount.
01 January 2014
income upto 10lacs is exempt. more than that charity has to pay STax
01 January 2014
Sudarshan, are you sure about this? If I am not wrong, charitable trusts are exempt from service tax!
01 January 2014
Refer Notification no.25/2012 wherein it is mentioned that certain charitable activities (as specified) provided by registered trusts are exempt. However other activities/ services provided by trusts other than the exempted ones are taxable. However, general threshold exemption of Rs.10 lacs is available to trusts also.
02 January 2014
even for charity only certain activities(specified therein) are exempt. Other general public utility services are exempt upto 10 lacs only
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Gst Sales of FY 2023-24
- RCM - commercial rent paid to URP under GST
- Payable outstanding for years disallowance
- SEC 54 OF IT ACT
- Offsetting interest income against derivative trading losses
- GST Annual Returns filing due date
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Need help with business structure for setting up a new business
- TDS applicability on Service through ECO
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
