Hello friends,
I am a CA, passed out in 1998 and a new member to the club.
I have a query on the FY 12 budget and govt notification on service taxes.
The notification highlighted that if the service tax is collected by the Residents Association the maintenance fees is exempted from service tax. The limit of the maintenance fee per month is Rs. 5000.
My question is : if the maintenance fee is not collected by the resident association and by a co. engaged by the builder and he continues to provide services till the resident association is formed, what is the service tax liability on the services offered by the co. for the maintenance and charges collected through a monthly billing.
It would be great if some one give me insight to this typical case with extract from the act, noficiation from Govt on service tax and recent case laws and help some innocent people who keep paying taxes when they are not liable to pay.
regards,
Satpathy
CAclubindia
