Service Tax on Club Membership

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These days builders Club Membership, Legal Charges in the final cost of a project. My question is that are these charges are included for the purpose of Service tax calculation under the category "preferential location" Service Category OR under "Club Membership & Associtaion" OR "Legal Service" Service Category I would appreciate if you please clarify the same.

Replies (2)

If the builder is charging, lumpsum amount for these, as part of the cost of the residential unit, then service tax will have to be paid under the service tax category under which you pay tax for the residential unit (Residential complex service??.. )

If these are expenses re-imbursements collected from you at actuals and the builder acts as a pure agent, then there shall be no service tax.

thanx Ganesh


CCI Pro

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