Service tax applicable or not?

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Rakib (Querist)
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08 August 2012 I have a business where we collect money from flat owners of a residential complex for maintenance, electricity, security etc. All manpower is provided by us. we meet all expenses out of the collection money. Any extra expenses is done by the construction company as the complex is not yet fully occupied. We take very little commission for manpower supply only. Under these circumstances is service tax applicable? If applicable then how I calculate the assessable amount for tax calculation? PLZ HELP."IT SHOULD BE NOTED THAT THE COLLECTION BUSINESS IS PROPRIETORSHIP"

SANJAY JAIN

SANJAY JAIN (Expert)
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08 August 2012 Dear

From the query what we understand that services are being provided by a resident welfare association.

AS the services of RWA has not been put either in negative list or in mega exemptions, so the service tax is applicable. Though at the same time if gross collection amount is less than 10 lakh annually, then threshold limit may be enjoyed.

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Rakib

Rakib (Querist)
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08 August 2012 Is there any service category called RESIDENTIAL WELFARE ASSOCIATION service ? Is entire collected amount is liable to tax? is any exemption can be availed for expenses made ?