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Membership fee for club arranging music program- taxable?

Manish K.Gandhi (Superintendent) (966 Points)

25 December 2014

A Group having "Club" in name, arranges 5/6 Filmy Song Program in rented town hall and collects yearly membership, gives entry ticket free to members and also sale tickets to non-members at the time of program. Does collection of membership fee is taxable under catagory "Club or Association Membership" and taxable or falls in Negative List Entry (j) of Section 66D of the FA'94 i.e. admission to entertainment events or access to amusement facilities? An Education Guide is silent and no relevant Circular/Case Law noticed.

Learned Experts are requested to guide/Opine in the matter.

REgards

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2 Replies

Rajat Gupta (xxx) (25 Points)
Replied 26 December 2014

Sir, The answer of your query is an parts:

As per amendments made by the introduction of Negative Listed Approach under Service Tax Regime All Services are taxable except 17 Negative listed services specified U/s 66D of FA1994.
In case of Clubs, AOPs etc if they are registered then the services provided are considered as self services and are not liable to service tax in other words it is like a hand providing massage service to other part of body.
The collection of fees by club from its members is not liable for service tax as the club is covered by negative list services as it is for the purpose of entertainment & there is no service tax on entertainment. Therefore not Taxable.
Selling of Tickets is not a taxable service hence no liability for the same.
however if the club has taken the service of other service provider for sale of ticket then the service provided by the service provider to the club is liable to service tax.

Hope the answer sought out your issue of taxability of services.

Manish K.Gandhi (Superintendent) (966 Points)
Replied 27 December 2014

Rajat Gupra Sir, thanks for prompt reply. Logically agreed, however if any instruction/CAse Law available,then plz provide to avoide future conflict with the department?

Regards.