Re: query on service tax notification number 12/2012

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 Dear Sir,

I have a small query. This is in reference to Notification Number 12/2012 dated 17th March 2012 relating to exempt services. Clause 28 of the notification is as below:

28. Service by an unincorporated body or an entity registered as a society to own members by way of reimbursement of charges or share of contribution -
(a) as a trade union;
(b) for the provision of exempt services by the entity to third persons; or
(c) up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;

My query is that a society is providing maintenance services to its own members. Service charges are levied on per square feet basis so the charges vary from Rs3,000.00 to Rs7,000.00 per month per member depending on the flat area. Will the service tax be applicable on maintenance charges to all the members or maintenance charges to the members whose maintenance charges exceed Rs5,000.00 per month.

Regards,

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 April 2012 Yes if it is below 5000 then no if above 5000 then yes but in maintenance you are paying service tax for security and other services taken by you this can be taken as off set.

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2012 My point is that few members are charged below Rs5,000.00 and others are charged more than Rs5,000.00 depending on the square feet area owned by them. Does it mean that the members who are charged below Rs5,000.00 will not be charged service tax and members whose maintenance charges are more than Rs5,000.00 will be charges service tax.

Many thanks for your help.

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