Query on service tax

607 views 3 replies
Dear Sir
 
I have a client, a registered Charitable Society which conducts Programs in hotels on HRD related matters like Behavioural Science, Stress Management etc. The activities are in the nature of Group Discussion and not either Management Consultancy or Commercial Training and Coaching Centre. The Fees are collected to cover up the direct expenses on hotel and faculty travel and indirect expenses on administration of the Program and the Society affairs. Till 31-03-2012 we were not charging ST because these activities were not considered as covered under ST. But with changes from 1st April, we wish to know whether they come under ST net work? We have suggested them to make every participant in the Program as a Member before attending the Program. Being the Program organized by the Members for the Members they come under the definition of Mutuality and I suppose they will be exempted  from the recent amendment u/s 2(15) as explained in the CBDT Circular.
 
Can you pl. tell us the position regarding Service Tax Liability?
 
Regards
 
CA Murali (M.No.80972)
9810064291
Replies (3)

hi,

Refer Notification No. 12/2012-ST dated 17/03/2012.

This Notification includes huge list of services which have been exempted.

It contain

Chartiable activities conducted by entity registered under Sec12AA of Income Tax Act

Please guide me whether we can revise the H1 return of F.Y. 2011-12 now? 

New tax regime based on the negative list will come in to force after enectment of the finanace bill and not w.e.f.01-04-2012. The services prvided by your client appears to be taxable under the new system. Under the new law, charity is defined and your service is not charity. Also the concept of mutuality  may not help.

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