Servcie tax on nidhi companies

This query is : Resolved

CA Atihash Agarwal (Querist)
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18 December 2015 Hello,

Pls tell me about the applicability of service tax on Nidhi Companies.
I got a nidhi company registered in the year 2014.
Recently i got a notice from the service tax department whereas i havent taken any service tax registration.
Pls advice

Neljo Davis ACA

Neljo Davis ACA (Expert)
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18 December 2015 Service Tax is applicable to Nidhi companies on Service Charges, Documentation Charges, Processing Fees etc. collected from customers. Companies are also liable to pay Service Tax under reverse charges mechanism i.e Service tax on receipt of services like Legal Services, Works Contract Services, Security services, Manpower supply services etc received from a business entity other than a Body Corporate..