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Service tax applicability

surya prakash (Manager - Accounts) (27 Points)

18 December 2014

A society registered under societies act having exemptions like 12A and 10(23)(c) is exempt from service tax. One company has constructed a building for the same society, is service tax is payable

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3293 Points)
Replied 18 December 2014

When NGO organization get registered with Income Tax department, to claim tax exemption for their income, it gets the 12 A certification.

From the Date of establishment of an nonprofit ngo organization like trust, society or nonprofit company, it should apply for registration with Income tax department to get 12A certificate. If delayed in applying for registration then the nonprofit ngo organization should submit Audit Reports for the past three years or as may be available.

Manish K.Gandhi (Superintendent) (966 Points)
Replied 18 December 2014

Yes, the activity of construction of complex is taxable activities in service tax and covered in Declared service in Section 66E(b).except where the entire consideration is received after issuance of completion-certificate by the competent authority. The issue that the society is having exemptions like 12A and 10(23)(c) is exempt from Income tax has no significance with service tax matters.