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Service tax liability

akshay (article assistant) (29 Points)

25 January 2016

A club charges annual membership fees of Rs.1500 to its members. Apart from this it also charges members for use of clubs facilities like gym, tennis court etc. Is service tax payable on membership fees?

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 25 January 2016

Yes service tax is applicable

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exemption is available only to

(i) any body established or constituted by or under any law for the time being in force; or

(ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or

(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or

(iv) any person or body of persons associated with press or media;

(Section 65(25a) of the Finance Act, 1994)