We are residents of a group housing society in Faridabad,
In our case, the monthly maintenance charge is below rs 5000/- for each resident
Total annual collection is approx 2 crores. At the moment service tax is being applied on all the residents bill whether less than 5000 or not. we are being told that if annual collection of RWA is more than 10 lakh, service tax is applicable.
I have gone through following circulars n notifications:
Circular No.175 /01 /2014 - ST
Notification No. 25/2012-Service Tax
But being an engineer could not make sense of it. Hence requested help from experts. The said rules may be interpreted in two ways and i list both:
1 Service tax from each resident is applicable bcause annual collection is more than 10 lakhs. It means even residents paying less than 5k hv to pay service tax on their monthly contribution due to annual cap being in affect
2 residents contributing less than 5000 pm do not hv to pay service tax. Residents contributing more than 5000 pm hv to pay service tax if the total collection from more than 5000 pm houses collectively becomes more than 10 lakh per annum
Would appreciate your help in clarifying this point. Thanks in advance Gaurav
CAclubindia
