business auxilary service and business support service

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CA Hemant T Dewani (Querist)
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26 December 2007 co op crdit society given followin srvices to its members
1-dd commission
2-prossing chargers
3-valuation of gold charges
4-building donation/bld fund
5-light bill com.from electricity board
whether co op crdit society are liable to service tax or not

R.V.RAO

R.V.RAO (Expert)
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27 December 2007
SERVICE TAX ACT DOES NOT RECOGNISE THE CONSTITUTION OF THE SERVICE PROVIDER WHETHER IT IS A COMPANY, FIRM, COOP. SOCIETY ETC... THERE IS NO such DIFFERENCE.. THE ACT RECOGNISES ONLY IF A PARTICULAR SERVICE IS TAXABLE OR NOT.
THE FOLLOWING INTERESTING AND SIMILAR QUESTION WAS RAISED IN AN OPEN HOUSE organised in gujarat CONDUCTED BY THE SERVICE TAX WING OF EXCISE DEPT. IN GUJARAT.
THE question and ANSWER are GIVEN BELOW

QUESTION:
Whether Service Tax would be payable, if a cooperative society is collecting funds from the members and provides different types of services like road, electricity, water etc.

ANSWER
The definition of Club or association, given in the Finance Act, 1994, is as follows:
“Club or association” means any person or body of persons providing services, facilities or advantages, for a subscription or any other amount, to its members, but does not include —
(i) Any body established or constituted by or under any law for the time being in force; or
(ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or
(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or
(iv) Any person or body of persons associated with
press or media.
Since the Co-operative society would not come under any of the above exclusions,
they will be required to pay Service tax.
SOURCE:www.gujaratchamber.org
IN YOUR PARTICULAR CASE ON WHICH THE QUERY IS RAISED , I DO NOT FIND ANY EXCLUSIONS STATED ABOVE FOR EXEMPTION.
THEREFORE THE COOP. CREDIT SOCIETY IS LIABLE FOR SERVICE TAX.
R.V.RAO

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