03 December 2015
What will be the tax liability of a National Association of a medical body like IMA, IDA or any such bodies who conducts its annual scientific conference for their faculties and students to enable them to gain knowledge over the day to day developments in their profession in which faculties from abroad (foreign nationals) are attending, which collects fees from its members and students in the same line of profession? It also accepts sponsorships from private entities. The Association entrusts this responsibility to any of its units or branches in India every year. The Association has its registered PAN and TAN numbers which is usually used by the host institution for all Tax commitments. For the conference, a fixed registration fee is collected from all the participating delegates so as to meet the expenses of food/hotel/event management etc. There may be a surplus over expenditure which may get transferred to the parent body. Now the service tax authorities require paying service tax on this since not in negative list. Please reply
11 December 2015
Any Activity done for consideration is chargeable to service tax except mentioned in negative list.
For education related services exemption is given to pre schools education up to higher secondary school or equivalent education for obtaining qualification recognised by law and education as a part of approved vocational education course
In your case non of activity is mentioned in negative list
therefore as per my view your activity is chargeable to service tax irrespective of the motive of profit.
CAclubindia
