Praveen Tawania Classes (Manager) (39 Points)
21 September 2011Whether RWA Liable to pay tax?
If Yes What are the tax rates applicable?
If Not, why no?
Whether RWA Liable to Pay taxes on total income or income earned from non member?
is there any provision in the income tax in this regard.....
Is there any provision for service tax...?
satish kumar Chauhan
(accountant)
(353 Points)
Replied 22 September 2011
the main object of the welfare associtins is social work on free of cost or nominal charges, so the are not lauble to pay tax. but it can be compulsory to submit the audited income & expenditure account to all related departments
hello
RWA are not liable for payment of income tax if services are provided to its members. It is not taxable because of the concept of mutuality.
However where RWA provides services to non members then they will be assessed to tax as AOP.
THis concept of mutuality is done away in service tax.
As per Explanation to S 65, RWA providing services to its members are liable for payment of service tax.
thanks
kaushal
CAclubindia
