Service tax on monthly maintenance charges of office
This query is : Resolved
27 December 2013
My office is 145 sq. ft.. Monthly Maintenance is Rs. 968 /-.
as
Gov. Tax ( Municipal Tax / Water Charges ) Rs. 515 /- p. m.
Other maintenance Rs. 453 /- p. m.
Society wants to take Service Tax from 2007 to 31.12.2012 as Rs. 12,180 /- from me. Four to five members are having big offices and their maintenance is Rs. 10,000 / p. m..
My argument is that if maintenance is less than Rs. 5,000 /- per month per office or residential house, it is exempt from service tax. Big office more than Rs. 5000 /- maintenance are liable. They say that because four are having big offices, all have to pay. Is is true ? They want to take VCES benefit.
They want to levy ST from all say 130 members Rs. 30,00,000 /- from 2007 to 31.12.2012
as
Gov. Tax ( Municipal Tax / Water Charges ) Rs. 515 /- p. m.
Other maintenance Rs. 453 /- p. m.
Society wants to take Service Tax from 2007 to 31.12.2012 as Rs. 12,180 /- from me. Four to five members are having big offices and their maintenance is Rs. 10,000 / p. m..
My argument is that if maintenance is less than Rs. 5,000 /- per month per office or residential house, it is exempt from service tax. Big office more than Rs. 5000 /- maintenance are liable. They say that because four are having big offices, all have to pay. Is is true ? They want to take VCES benefit.
They want to levy ST from all say 130 members Rs. 30,00,000 /- from 2007 to 31.12.2012
27 December 2013
Only those who are liable to pay in accordance of law can be demanded service tax.
27 December 2013
It means the payment of service tax is not applicable to me, since mine is below Rs. 5000 monthly maintenance. Under which ground they are demanding ? Should all members oppose ? Whether my arguments hold good ?
27 December 2013
From where did you get that 5000 thing. Can you give me a reference of it.
My answer was in general, I am not aware of law on maintenance charges.
My answer was in general, I am not aware of law on maintenance charges.
27 December 2013
From 01-July-2012
ENTRY 28 OF NOTIFICAION NO. 25/2012-ST
"Exemption is in respect of “reimbursement charge or share of contribution” up to an amount of Rs 5000/- pm per member for .........." . Where the above aggregate exceeds Rs.5000/month/member, Service Tax to be collected on the receipt from that particular Member.
ENTRY 28 OF NOTIFICAION NO. 25/2012-ST
"Exemption is in respect of “reimbursement charge or share of contribution” up to an amount of Rs 5000/- pm per member for .........." . Where the above aggregate exceeds Rs.5000/month/member, Service Tax to be collected on the receipt from that particular Member.
27 December 2013
IF MAINTENANCE MORE THAN Rs. 5000 /- P. M. PER OFFICE LIABLE TO SERVICE TAX. OK. BUT IF 95 % MEMBERS IN COMMERCIAL PREMISES ARE HAVING LESS THAN RS. 5000 /- MAINTENANCE. AND ONLY 5 % ARE HAVING MORE THAN Rs. 5000 /-. THEN ALL MEMBERS ARE LIABLE. THAT INTERPRETATION HAS BEEN TAKEN IN ALL COMMERCIAL PREMISES IN CHURCHGATE NEAR INCOME TAX & THEY STARTED TO LEVY & APPLIED FOR VCES.
MAY BE IN APPREHENSION OF PENALTY !!!!.
JUST I WANT TO HAVE CORRECT INTERPRETATION OF MEGA EXEMPTION IN ITEM 28 OF NOTIFICATION NO. 25/2012 -ST.
MAY BE IN APPREHENSION OF PENALTY !!!!.
JUST I WANT TO HAVE CORRECT INTERPRETATION OF MEGA EXEMPTION IN ITEM 28 OF NOTIFICATION NO. 25/2012 -ST.
27 December 2013
Yes that is up to 5000 per month per member exemption. But problem is what is the position before 01-07-2012.
I do not remember any such levy before such date.
Under VCES, rates and taxability is to taken as prevalent in respective period.
Still whatever the levy was, only those will have to pay who are liable. It is natural justice, what else grounds is required.
I do not remember any such levy before such date.
Under VCES, rates and taxability is to taken as prevalent in respective period.
Still whatever the levy was, only those will have to pay who are liable. It is natural justice, what else grounds is required.
14 January 2014
You would like to refer circular by CBEC CIRCULAR NO. 175/01/2014-ST, DATED 10-1-2014.
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