Hello
we are the Society registered under societies registration act, 1860. We are receiving the membership fee from our industry partners and institutional members. Industry partners are ultimately going to get the skilled manpower from our services.
My query is that whether on membership fee service tax is applicable and if yes under what services it will cover??
The concept of mutuality no longer exists and such services provided by a society to its members would be taxable under the Service Tax Law.
However, there is also an exemption to such services vide Notification No.25/2012-ST dated 20 June 2012, wherein the following may be noted –
“28. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution -
Such services were not taxable under any of the service categories, hence, you may taxes under the 120th category i.e., other category.
CAclubindia
