Taxable or exempt

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Prakash kumar

Prakash kumar (Querist)
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20 April 2015 Dear sir , NGO services exempted or taxable ?

CA. Narendra Purohit

CA. Narendra Purohit (Expert)
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20 April 2015 Dear Sir,

as your query is incomplete. Although as I am getting your point that if NGO provides services to various persons for free of cost i.e. services provided without consideration and we can say free of cost. All services provided for free of cost is exempted and not taxable.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2015 Not all the services, only the following Charitable activities of NGO is exempted from service tax.
“charitable activities” means activities relating to -
(i) public health by way of -
(a) care or counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or
(b) public awareness of preventive health, family planning or prevention of HIV infection;
(ii) advancement of religion or spirituality;
(iii) advancement of educational programmes or skill development relating to,-
(a) abandoned, orphaned or homeless children;
(b) physically or mentally abused and traumatized persons;
(c) prisoners; or
(d) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife; or
(v) advancement of any other object of general public utility up to a value of,-

(a) eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during 2011-12;
(b) twenty five lakh rupees in any other financial year subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during the preceding financial year;

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Prakash kumar

Prakash kumar (Querist)
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20 April 2015 sir if cab service provided to NGO is taxable or exempt?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 April 2015 Cab service provided to NGO is taxable.

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