Whether service tax is applicable for trust

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This query is : Resolved

fakrudheen (Querist)

01 January 2014 we have formed one trust also have 12A Registration from income tax. one month ago we have conducted one exhibition in the name of trust while through this exhibition we have received rs 90 lakh as sponsorship income rs 20 lakh as stall rental income but we have not collected or paid service tax on that income

whether trust will covered under the mega exemption list?

i will expect from you detailed report on the above situation

Annu Agarwal

Annu Agarwal (Expert)

01 January 2014 Sir
Here is a detailed analysis:
1.Section:66B-Charging section-Any person providing any service shall pay service tax.
2.Section 65B :Where "Person " is defined says person includes an Assosciation or body of individuals whether incorporated or not-This means Trust are included in the definition.
3.Negative List:Section 66D there is no exemption in the negative list for Trust.
4.Notification No.25/2012 dated 20.06.2012: Provides exemption to CHARITABLE ACTIVITIES provided by a Trust registered under section 12AA Of Income Tax.
The services of Sponsorship AND Renting of stalls as provided by You are not charitable activities and are therefore not EXEMPTED.
Therfore you are required to pay service tax on the same.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

01 January 2014 Service tax attracts since 'sponsorship' and 'renting of stalls' cited in the query doesn't come under section 66D(negative list) or in notification 25/2012(exempted services).

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