Service tax on rental income & swimming pool charges

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Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2016 Whether service tax is applicable on rental income and swimming pool charges received by school.
School is running under a registered society and society is collecting rent from premises given in rent.
Also swimming pool and gymnasium charges is received by society from outsiders using the facility.

Whether service tax is applicable on these services?

Rupesh Jain

Rupesh Jain (Expert)
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09 June 2016 in my opinion ,swimming pool facilities for charges may come within the service category "Health Club and fitness centre " which is defined u/s 65(52) of the Finance Act 1994 to mean any establishment , including a hotel, or resort , providing health and fitness service.
As per the definition contained in section 65(51) "health and fitness service " means
service for physical well-being such as sauna and steam bath, Turkish bath, solarium, spas , reducing or slimming salons , gymnasium ,yoga , meditaion, massage (excluding therapeutic massage ) or any other like services;
Although , swimming pool service is not directly included in the definition, but the plain reading of th elaw shows that any kind of service which is associated with fitness and health shall fall within ambit of aforesaid definition.

and renting of building come under rent on immovable property.

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Rupesh Jain

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Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2016 Even if it is charged by educational institute, then also it is covered under service tax net ?

Rupesh Jain

Rupesh Jain (Expert)
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09 June 2016 if you are providing service, there is not diff. what is your status. but if you receipts exceeds rs. 10 lacs in a year then you have to take registration with service tax and pay the tax.

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2016 Sir if Rental Income is Rs.900,000/- and swimming pool charges are Rs.200,000/-, then whether service tax will be applicable ?

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2016 If the school is receiving rental income of Rs.900,000/- and swimming pool charges of Rs.200,000/-, then whether service tax is applicable ?

Rupesh Jain

Rupesh Jain (Expert)
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27 June 2016 you receipts is exceeds rs. 10 lacs you have to apply for registration of service tax.

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