In a welcome move to promote YOGA, the Central Government has exempted the activities relating to 'advancement of yoga' from the levy of service tax.
The definition of 'charitable activity' contained in mega exemption notification no. 25/2012-ST dated 20-06-2012 has been amended by Notification No. 20/2015-ST dated 21-10-2015 to include 'yoga' in the said definition. The extract of definition as per Paragraph 2(k) of mega exemption notification before the amendment is reproduced below:
"Charitable activities " means activities relating to --
(i) xxxx
(ii) advancement of religion or spirituality;
(iii) xxxx..."
Now, in clause (k), in sub-clause (ii), for the words 'religion or spirituality', the words 'religion, spirituality or yoga' has been substituted.
The implication of this amendment is that any activity relating to advancement of yoga, IF provided by an entity registered under section 12AA of the Income Tax Act, 1961 becomes exempted vide Entry No. 4 of mega exemption notification, which is reproduced below:
"4. Services by an entity registered under section 12AA of the Income Tax Act, 1961 (43 of 1961) by way of charitable activities;"
I request the beneficiaries (read Baba Ramdev) of this exemption to pass on the direct benefit of 14% to their followers/users/devotees.
Thanks & Best Regards,
Manoj Agarwal,
Service Tax Consultant,
Rourkela
CAclubindia
