Service Tax Consession to Society

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A.PRABHAKARA RAO

CHARTERED ACCOUNTANT

22 Points Posted on 03 October 2009

I have one query i.e. a group of people formed as society to build apartment for their home consumption. During the course, society is engaging various professionals for execution of tasks like Lawyers, Chartered Accountants and Project Management Committee etc. Since these professionals are extending taxable services to the society, they are charging service tax. Is there be any way that this society, since not incorporated for any commercial object, shall get exemption of levying service tax by the service providers. If so what is the procedures etc. is requested to be shared. Apart from the above, do the society can get any other relaxations from the tax regime point of view

Regards

A.PRABHAKARA RAO

ca.prabhakar @ lnpandco.com

Replies (2)

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

609 Points Posted on 03 October 2009

THE ULTIMATE VICTIM OR PAYEE OF ANY INDIRECT TAX IS END USER

YOUR SOCIETY IS END USER SO YOU CAN NOT SHIFT YOUR BURDEN.

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 04 October 2009

The only possible tax concession is to question whether the society and its members are different. If they are the same they cannot be provide service to themsleves. The matter has not reached any final stage therefore dispute is possible. Payments to service provider is to be made in normal course.