Mega exemption notification no. 25/2012-st dated 20/06/2012
This query is : Resolved
20 January 2014
Service by an unincorporated body or non-profit entity registered under any law for the time being in force, to its won members by way of reimbursement of charges or share of contribution -
upto an amount of Rs. 5000/- per month per member for souring goods or services from third person for the common use of its members use of its members in a housing society or residential complex is exempt.
Does Rs. 10/-Lakh threshold exemption is also applicable for this exemption.
i.e. If Rs. 4000/- per month per member is collected from 25 members. Total of Rs. 12 Lakh is collected ie. Rs. 4000*25 members*12 months. Is the society exempt since it has received less than Rs. 5000/- per month per members though the threshold limit has exceeded Rs. 10 Lakhs?
upto an amount of Rs. 5000/- per month per member for souring goods or services from third person for the common use of its members use of its members in a housing society or residential complex is exempt.
Does Rs. 10/-Lakh threshold exemption is also applicable for this exemption.
i.e. If Rs. 4000/- per month per member is collected from 25 members. Total of Rs. 12 Lakh is collected ie. Rs. 4000*25 members*12 months. Is the society exempt since it has received less than Rs. 5000/- per month per members though the threshold limit has exceeded Rs. 10 Lakhs?
20 January 2014
Society is exempted from payment of service tax.
Threshold limit is linked to 'amount received from taxable service' whereas in the cited case entire amount received is
from 'exempted service'. No need to check the threshold limit.
Threshold limit is linked to 'amount received from taxable service' whereas in the cited case entire amount received is
from 'exempted service'. No need to check the threshold limit.
20 January 2014
Thanks Sir. Though the total received amount is more than Rs. 10 lakh, the society is exempt from the provision of service tax because of this notification. Is my understanding correct?
20 January 2014
Yes, by virtue of explanation B of notification 33/2012 ST, the society can seek exemption
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