chargeablity of service tax

This query is : Resolved

SURINDER SINGH (Querist)
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03 October 2008 A private society is providing following facilities to its members on collective basis
24 hour security guard
Sweeper for society premises
Lighting for society- lawns roads etc.
Free membership of gym. Maintained by the society
24 hour power back up by using diesel gensets

While first 4 services are collectively charged @ Rs. 2750 per month per member ,
for power back up members are charged @ Rs. 40per month for each electricity
point used by member regardless of diesel consumed by society.. What is the
service tax chargeable from each member. .Shall the calculation change if society charges rs. 3500 per month per member instead of rs. 2750. Please also refer relevant section/notification

Dayal

Dayal (Expert)
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04 October 2008 Residential Complex means under section 65(91a),

a building or building ,having more than 12 residential units; and having any one or more of facilities or services as park,lift ,parking space community hall,common water supply of effuent treatment system,located within premises.

Exemption to resident welfare association vide notification No.8/2007-Service Tax, dated 01.03.2007 – Regarding.

A number of representations have been received from Co-operative Group Housing Societies who are providing taxable services under section 65(105)(zzze) seeking whether a resident welfare association registered as a co-operative society with the Registrar of Co-operative Societies is entitled for the benefit of service tax exemption under notification No.8/2007-Service Tax, dated 01.03.2007 or not.

2. A resident welfare association, even if it is registered as a co-operative society with Registrar of Co-operative Societies, is eligible to avail exemption from levy of service tax vide notification No.8/2007-Service Tax, dated 01.03.2007 provided the following conditions are satisfied, namely:-

(1) The exemption is available for the services specified under section 65(105)(zzze) of the Finance Act, 1994 and provided or to be provided by the association to its members.

(2) The sole criterion for membership of the resident welfare association is the residential status of a person in a residential complex or locality i.e., membership of the association is restricted only to the residents of the complex or locality.

(3) The value of total consideration received from an individual member by the association for providing the services should not exceed Rs.3,000/- per month.

SURINDER SINGH

SURINDER SINGH (Querist)
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04 October 2008 thanks for reply .In the instant case ,does total consideration include receipt for power back up (for which it purchases diesel from outside agency ).if yes .is my calculation correct for a member having 10 electricity points with power back up

monthly fee 2750
electricity back up (10*40 Per Unit) 400
total 3150
service tax @12.36 % 389.34

is there any abatement available to society for diesel purchase

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