Service tax on co-op society

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Nilesh

Nilesh (Querist)
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09 June 2009 is there any notification in service tax said that co-op society is exempt from service tax

pls reply

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 June 2009 Yes notification no. 8/2007 as under:

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services, specified in sub-clause (zzze) of clause (105) of section 65 of the said Finance Act, provided or to be provided, by a resident welfare association where the sole criterion for its membership is the residential status of a person in a residential complex or locality, to its members, from the whole of the service tax leviable thereon under section 66 of the said Finance Act, subject to the condition that the total consideration received from an individual member by the said association for providing the said services does not exceed three thousand rupees per month.

Exemption only upto 3000/- p. m. Exceeding it whole service taxable.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 June 2009 And the clarification:

F.No.137/68/2007-CX.4

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

*****

New Delhi, the 8th May, 2007.

Subject: Exemption to resident welfare association vide notification No.8/2007-Service Tax, dated 01.03.2007 – Regarding.

A number of representations have been received from Co-operative Group Housing Societies who are providing taxable services under section 65(105)(zzze) seeking whether a resident welfare association registered as a co-operative society with the Registrar of Co-operative Societies is entitled for the benefit of service tax exemption under notification No.8/2007-Service Tax, dated 01.03.2007 or not.

2. A resident welfare association, even if it is registered as a co-operative society with Registrar of Co-operative Societies, is eligible to avail exemption from levy of service tax vide notification No.8/2007-Service Tax, dated 01.03.2007 provided the following conditions are satisfied, namely:-

(1) The exemption is available for the services specified under section 65(105)(zzze) of the Finance Act, 1994 and provided or to be provided by the association to its members.

(2) The sole criterion for membership of the resident welfare association is the residential status of a person in a residential complex or locality i.e., membership of the association is restricted only to the residents of the complex or locality.

(3) The value of total consideration received from an individual member by the association for providing the services should not exceed Rs.3,000/- per month.

3. This issues with the approval of Member (Budget).

Yours faithfully,

(G.G. Pai)

Under Secretary to the Government of India

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