Serive tax applicable or not ???

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)

30 July 2011  

Situation :

There is a mess which is managed by students. Till now there was each and everything was illegal and now they want to make such illegal thing into legal so I consult them to form a co-operative society.... because they do not want to pay any tax, is it ok with co-operative society or there should be trust or company u/s 25 ? The net turnover is more than 3crore They first collect all money from students and such money is spend on them only i.e. there is no profit in short there is mutuality concept. My further question is whether service tax is applicable or VAT is applicable or none ??? If yes, is there any way to escape from these taxes ?? Employees are more than 60. Which other acts/taxes are applicable here  ??

Please suggest me...

Thank You in advance...

 

Regards,

Siddharth Bumb.