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TMI Blogservice tax on membership feeX X X X Extracts X X X X X X X X Extracts X X X X ..... A Society for welfare of employees is receiving membership fee. Amount of fee is received for three years in advance. Whether this fees is to be bifurcated into 3 years for calculating basic exemption of 10 lacs.If it receives ₹ 27 lacs in first year (for three years membership) , whether service tax applicable or we can bifurcate to three years and avail basic exemption. - Reply By CA.Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... run Agarwalla - The Reply = Dear sir please see to the fact that of the case that the society may be regarded as trade union. if it is so specific exemption vide mega exemption notification can cover your case no 25/2012. coming to your query it is important that how the accounting of the membership fees is being done is more important. if the fees is recognized within 3 years then in ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax also the similar process to be taken. thanks CA. Tarun - Reply By Manoj Agarwal - The Reply = Dear Sir, In my view, if you have received ₹ 27 lacs in 1st year (as advance consideration for 3 years), the point of taxation is the date of advance ( Rule 3 of POTR, 2011 ) and service tax is payable thereon in the 1st year itself and such receipt cannot be bifurcated into 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years irrespective of accounting treatment of such receipt. - Reply By bhart b sharma - The Reply = it appears to be covered under 'Membership of Club or Association Services'; Section 65(105)(zzze) of Finance Act, 1994 . the meaning of 'club or association' is provided under Section 65(25aa) of the Act. from your querry, it is not clear as to what is the nature of acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity undertaken by the association/society. there is Valuation angle, covered by Valuation Rules of Service Tax also, there is question of SSI exemption of 10 lakhs. further, it involves Point of TAxation and Place of Provision Rules as well. - Reply By satbir singh wahi - The Reply = A Society is for welfare of employees, doing activities like seminar , proposed housing projects et ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c, meetings etc. The menbership fee received during the year is ₹ 27 Lacs for three years . Now whether Service tax applicable . - Reply By CA.Tarun Agarwalla - The Reply = Dear Sir your case seems to be covered as a trade union as it is for the employees and their benefits. if it is so then your case is covered under mega exemption notification no 25/2012 and hence not taxable - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By satbir singh wahi - The Reply = Sir Only registered as society not registered as trade union . - Reply By KASTURI SETHI - The Reply = I agree with Sh.Manoj Agarwal with his opinion dated 18.8.2015. - service tax on membership fee - Query Started By: - satbir singh wahi Dated:- 8-8-2015 Service Tax - Got 7 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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