Club Membership fees
This query is : Resolved
15 July 2011
When I am receiving membership fees (to be subject to service tax under head of club membership servide), in past when ST was payable on receipt basis, as & when I received the fees, I discharged teh liability. However from 01/04/11, when ST is liable on accrual basis, when should I consider such fees as being accrued? Following are the main reasons for consideration :
1. Not necessary that all the past members shall become members in the current year. So on the first day of the next year, I cannot assume that liability shall be same as last year & thus discharge it off.
2. I give a grace period of 3 months for payment of membership fees. If fees is not paid till then, I cancel the membership. But till then I may or may not continue to provide the membership benefit to the past members.
3. Thereafter also, if the past member pays the membership fees for the whole year, I consider him as member & give him the benefit. But till he pays the amount, I am not sure if he will become member of not.
4. Till the fees is received, I have absolutely no cue of whether he will become member or not. I donot receive any intimation etc also from the past members for willingness for continuation of membership.
1. Not necessary that all the past members shall become members in the current year. So on the first day of the next year, I cannot assume that liability shall be same as last year & thus discharge it off.
2. I give a grace period of 3 months for payment of membership fees. If fees is not paid till then, I cancel the membership. But till then I may or may not continue to provide the membership benefit to the past members.
3. Thereafter also, if the past member pays the membership fees for the whole year, I consider him as member & give him the benefit. But till he pays the amount, I am not sure if he will become member of not.
4. Till the fees is received, I have absolutely no cue of whether he will become member or not. I donot receive any intimation etc also from the past members for willingness for continuation of membership.
17 July 2011
issue renewal notice/advise for payment to members, but issue receipt/bill only against payment, this will help you to account the liability on payment basis and will not violate the law also
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- ECO SUPPLY REPORTIONG IN GSTR-1
- Non issue of e way bill
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- Payment to foreign customer
- Gstr7 vs Gstr3b 2026
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
