2023 (5) TMI 442 - SCH - Service Tax

Applicability of service tax - services rendered by a club to their members as also the service tax on membership fee - subscription fee - HELD THAT - This Court adverting to the decision in STATE OF WEST BENGAL ORS. VERSUS CALCUTTA CLUB LIMITED AND CHIEF COMMISSIONER OF CENTRAL EXCISE AND SERVICE ORS. VERSUS M/S. RANCHI CLUB LTD. 2019 (10) TMI 160 - SUPREME COURT observed that the said decision deals with clubs which are incorporated but insofar as the present respondent is concerned, the same is an unregistered institution and is not incorporated under any provisions of law. With this observation, notice was issued in this case. Considering the nature of the case, leave is granted.

Summary

The Supreme Court of India condoned the delay and addressed the issue of service tax on services provided by a club to its members. The court upheld the levy of service tax on membership fees but ruled that service tax is not applicable when the club renders services to its members as a case of service to oneself. The court granted leave for further consideration based on the nature of the case.