24 April 2009
Assessee is a Maintenance cooperative socity. It collects life time maintenance deposit at once, say at 12% of price of premises.Therefore, the amount maintenance deposit payable in first year is far exceeding Rs.3,000 per person/premises. It will earn interest on deposits and meet its expenses from it.
Whethe service tax will be applicable on lifetime deposits collected first year ? Will there be any tax liability in subsequnty years assuming society will not collect any deposit exceeding Rs.3000 in subsequent years ?