06 November 2010
We are registered under the Service tax Code of "Supply of Tangible Services"
There was a query where we are providing audio amplification for a church function. They have asked us not to charge service tax due to the following Notification:
Notification No. 14/2003-S.T., dated 20-6-2003
In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided to any person by a mandap keeper for the use of the precincts of a religious place as a mandap, from the service tax leviable thereon, under section 66 of the said Act.
Explanation.- For the purpose of this notification, “religious place” means a place which is meant for conduct of prayers or worship pertaining to a religion.
2. This notification shall come into force on the 1st day of July, 2003.
Also refer to the following:
1 ] as per the FAQ of the Service tax Department
5. SOUND RECORDING SERVICES :
Q.5.1) Whether lending/hiring of Video/Sound Recording equipment come under Service Tax? Ans :- The Lending/hiring of Video/Sound Recording equipment is in the nature of Sub-contracts and because the Sub-contractors are not providing the services to the customer directly, they are not required to pay the Service Tax.
2] In case of CCE V Mahabir International (2008)15STT487(CESTAT SMB) is was held that where the activity involved is not a commercial activity . it cannot be taxed as a ”event management service”
In view of the above it is clear that there would be no service tax on the Sound services .
08 November 2010
Supply of Tangible goods is an entry which came into the law books much after event mgemnt. The notifciation refered is not for the supply of tangible goods- therefore you are to charge the church ST.
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