Serive tax applicable or not ???

i think u decided right     As income from any service provided by Co-operative to its members is allowable as deduction U/S-80 P in INCOME TAX ACT.again there is no applicability of VAT here As there is no  sale/trading of Goods .

even no Excise to be applicable.

but main part is SERVICE TAX itself will not fall in this case    As u r not getting any receipt from others except from members .As it is very clear under Service tax rules unless there is a receipt .No question of paying service tax at all.

But my suggestion is if u r also providing any such service to outsiders also then u r very much liable 2 Service tax if it crosses once 10 laks limit under service tax basic exemption limit ..........

u r not allowed to form a trust 7 sec-25 Co. if the main object of ur trust & sec-25 co. is only providing service to members

any other views r welcomed..