Gym fees collected

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my client is running gym he is collected monthly gym feess. its profession or business
Replies (11)
Profession :
“Profession” may be defined as a vacation, or a job requiring  some thought, skill and special knowledge like that of C.A., Lawyer, Doctor, Engineer, Architect etc. So profession refers to those activities where the livelihood is earned by the persons through their intellectual or manual skill.

Taking into consideration above definition gyming requires manual skills
It is profession.
Sir as per gst hsn code for gym services is 9506 hence they also are considering the same as services
Originally posted by : VARUN MAHAJAN ADVOCATE
Sir as per gst hsn code for gym services is 9506 hence they also are considering the same as services

just because something is classified as a service, that doesn't mean its a profession. running a gym doesn't mandatorily require. I can a bed ridden person owning a gym that is managed by trained staff! 

Sir in this context I would ask my freind that if a doctor
Originally posted by : VARUN MAHAJAN ADVOCATE
Sir in this context I would ask my freind that if a doctor

even if you are a doctor, gym would ideally be classified as a business only.

as of mine's opinion.. if person owned such gym is a trainer in that gym then it is his Profession income since he using his manual skills to earn income.
if he simply owned gym, not being as a trainer then it is his business income because he just made an investment and receiving income without his manual skills as in profession.
As per my opinion, for the assessees covered under section 44AA it will be Business and for other service providers it will be business.

If the person is a fitness professional(like yoga, aerobics, etc..,) and trains his clients - then it is profession

if the person provides equipment, and members use them, then it is business.

 

A fitness professional is a professional in the field of fitness and exercise, most often instruction (fitness instructor), including aerobics and yoga instructors and authors of fitness instruction books or manuals. courtesy - google

It's a question which totally depends upon the facts of the case. can't make any wild guesses without complete information.
Now the question raised can understood with below mentioned case law

AAR, Uttarakhand :

Supply of pure food items from sweetshop-cum-restaurant treated as supply of service. (Kundan Misthan Bhandar – October 22, 2018).

*In case of sweet shop cum restaurant, services from restaurant is a principle supply which provides a bundled supply of preparation and sale of food and serving same and, therefore, it constitutes a composite supply.*
*Where applicant has a sweet shop in ground floor and a restaurant in first floor of same building, supply shall be treated as supply of service and sweet shop shall be treated as extension of restaurant and activity of applicant would come under purview of 'restaurant services' falling under Heading 9963 attracting GST @ 5% and applicant cannot avail credit on GST paid on goods and services used in its said activity in terms of Notification No. 11/2017-Central Rate (Tax), dated 28-6-2017*.


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