Exemption of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2014 If we are working for an organization registered under 12AA.
Is it required to notify in our contract doc that we wouldn't be responsible for Service tax to avail the exemption or is it understood.

Annu Agarwal

Annu Agarwal (Expert)
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04 May 2014 If you are providing services as a entity registered under U/s 12AA of the income tax act by way of activities other than charitable activities ,then you are liable to service tax.
As per my understanding it is better to mention inthe contract documents that you are registerd under section 12AA ,so you are exempted by virtue of notification 26/2012 in case you are providing charitable activities.By doing this ,it shall help you in dealing with Service tax issues if any at later stages.