Query

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 -

1. as a trade union;
2. for the provision of carrying out any activity which is exempt from the levy of service tax; or
3. up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;”

Such services were not taxable under any of the service categories, hence, you may taxes under the 120^th category i.e., other category.