Co-operative society
This query is : Resolved
23 April 2013
Notification 12/2012 issued on 17th March, 2012 point 28 exempt unincorporated body and entity registered as a society to own members by way of reimbursement of charges or share of contribution- upto an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex.
My Query is whether rupees 5000/- is threshold limit or supposingly society collects 6000 then whether service tax is payable on Rs 1000 or Rs 6000 (if threshold limit).
Further commercial co-operative society are taxable without any limit and if residential co-operative society also become liable for service tax. In the given case if society is not registered then how to do service tax registration? Is society is required to get registered first or is there any other way to get registration under service tax
My Query is whether rupees 5000/- is threshold limit or supposingly society collects 6000 then whether service tax is payable on Rs 1000 or Rs 6000 (if threshold limit).
Further commercial co-operative society are taxable without any limit and if residential co-operative society also become liable for service tax. In the given case if society is not registered then how to do service tax registration? Is society is required to get registered first or is there any other way to get registration under service tax
23 April 2013
Dear experts,
I need to ask one more thing regarding above matter.
how to calculate turnover of 10 lacs for registration purpose.
supposingly co-operative society also provides place on rent to mobile towers and may also provide space for canteen to third person. Then how to calculate turnover.
If in the above example only 1000 is taxable out of 6000 collected then how to calculate turnover for registration purpose.
please suggest in the given senario
I need to ask one more thing regarding above matter.
how to calculate turnover of 10 lacs for registration purpose.
supposingly co-operative society also provides place on rent to mobile towers and may also provide space for canteen to third person. Then how to calculate turnover.
If in the above example only 1000 is taxable out of 6000 collected then how to calculate turnover for registration purpose.
please suggest in the given senario
19 July 2024
Let's break down the queries regarding service tax implications for cooperative societies, particularly in the context of residential and commercial activities:
### 1. Threshold Limit for Service Tax:
- The notification you referred to (Notification 12/2012) exempts unincorporated bodies, including societies, from service tax up to an amount of Rs. 5,000 per month per member for sourcing goods or services for common use.
- If the amount collected exceeds Rs. 5,000 per month per member, service tax would generally apply on the amount exceeding this threshold.
### 2. Taxability of Commercial vs. Residential Cooperative Societies:
- **Commercial Cooperative Societies**: Typically, commercial cooperative societies are liable to pay service tax without any exemption limit, as they engage in commercial activities beyond the scope of residential use.
- **Residential Cooperative Societies**: As per the exemption under Notification 12/2012, residential cooperative societies are exempt from service tax up to Rs. 5,000 per month per member for common use services or goods sourced from third parties.
### 3. Service Tax Registration:
- If a cooperative society exceeds the exemption limit of Rs. 5,000 per month per member, it would be liable to pay service tax.
- The society must register for service tax with the appropriate authorities once the liability arises. Registration can typically be done online through the ACES (Automation of Central Excise and Service Tax) portal.
### 4. Calculation of Turnover for Registration Purpose:
- **Turnover Calculation**: For service tax registration purposes, turnover generally includes the total value of taxable services provided by the cooperative society.
- If the society collects Rs. 6,000 from members for services exceeding the exemption limit, service tax would be applicable on the amount exceeding Rs. 5,000 per member per month.
- For example, if Rs. 1,000 is taxable out of Rs. 6,000 collected, the turnover for service tax registration purposes would be based on the taxable amount (Rs. 1,000).
### 5. Additional Services Provided (Renting Space to Mobile Towers, Canteen, etc.):
- **Renting Services**: If the cooperative society rents out space to mobile towers or operates a canteen for third parties, the consideration received from these activities would be included in the turnover calculation for service tax registration.
- Turnover here would encompass all taxable services provided, including rental income from leasing space and income from other commercial activities.
### Conclusion:
- Cooperative societies, both residential and commercial, need to monitor their collections and ensure compliance with service tax regulations.
- If the society exceeds the exemption limit under Notification 12/2012, it must register for service tax and comply with filing requirements.
- For precise calculations and compliance, it's advisable to consult with a tax consultant or chartered accountant familiar with service tax laws and cooperative society regulations in Maharashtra. They can provide tailored advice based on specific circumstances and ensure accurate compliance with tax obligations.
### 1. Threshold Limit for Service Tax:
- The notification you referred to (Notification 12/2012) exempts unincorporated bodies, including societies, from service tax up to an amount of Rs. 5,000 per month per member for sourcing goods or services for common use.
- If the amount collected exceeds Rs. 5,000 per month per member, service tax would generally apply on the amount exceeding this threshold.
### 2. Taxability of Commercial vs. Residential Cooperative Societies:
- **Commercial Cooperative Societies**: Typically, commercial cooperative societies are liable to pay service tax without any exemption limit, as they engage in commercial activities beyond the scope of residential use.
- **Residential Cooperative Societies**: As per the exemption under Notification 12/2012, residential cooperative societies are exempt from service tax up to Rs. 5,000 per month per member for common use services or goods sourced from third parties.
### 3. Service Tax Registration:
- If a cooperative society exceeds the exemption limit of Rs. 5,000 per month per member, it would be liable to pay service tax.
- The society must register for service tax with the appropriate authorities once the liability arises. Registration can typically be done online through the ACES (Automation of Central Excise and Service Tax) portal.
### 4. Calculation of Turnover for Registration Purpose:
- **Turnover Calculation**: For service tax registration purposes, turnover generally includes the total value of taxable services provided by the cooperative society.
- If the society collects Rs. 6,000 from members for services exceeding the exemption limit, service tax would be applicable on the amount exceeding Rs. 5,000 per member per month.
- For example, if Rs. 1,000 is taxable out of Rs. 6,000 collected, the turnover for service tax registration purposes would be based on the taxable amount (Rs. 1,000).
### 5. Additional Services Provided (Renting Space to Mobile Towers, Canteen, etc.):
- **Renting Services**: If the cooperative society rents out space to mobile towers or operates a canteen for third parties, the consideration received from these activities would be included in the turnover calculation for service tax registration.
- Turnover here would encompass all taxable services provided, including rental income from leasing space and income from other commercial activities.
### Conclusion:
- Cooperative societies, both residential and commercial, need to monitor their collections and ensure compliance with service tax regulations.
- If the society exceeds the exemption limit under Notification 12/2012, it must register for service tax and comply with filing requirements.
- For precise calculations and compliance, it's advisable to consult with a tax consultant or chartered accountant familiar with service tax laws and cooperative society regulations in Maharashtra. They can provide tailored advice based on specific circumstances and ensure accurate compliance with tax obligations.
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
Unanswered Queries
- Input tax credit on modular office kitchen
- GST Payable Entry
- Regarding TDS..
- Bill from and ship from
- Reporting Missed Sale in GSTR-3B
- Salary return 24Q Q-4 F.Y.2024-2025 A.Y.2025-2026
- Amazon.com Tax Report
- HOW TO PAY GST --CALCULATION OF FORMULA....IF ANY
- TDS u/s 194-IA on the Home Loan Disbursement Amount
- Clarification on Notification No. 40/2017-Central Tax (Rate)
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
