Trade associations are liable for service tax under Clubs and Association Services

It has been clarified by the Central Board of Excise and Customs (CBEC) that the trade association falls within the scope for "clubs and association services". 

It was held that the services provided by these associations are not of charitable, religious or political in nature.  They collect membership fees and other charges from their members and they work for the interest of trade and industries.  Therefore, they do not have objectives which could be categorized as public service.  Accordingly, they do not fall within the scope of the excluded categories. 

It was further clarified that the services provided by the trade associations to their own members are not in the nature of "self service" by virtue of the Explanation under Section 65 of the Finance Act, 1994 which clearly states that the taxable services includes any service provided by any unincorporated association or body of person to a member thereof, for cash deferred payment or any other valuable consideration.