Company background
The company is providing service which includes
- Beauty Parlor (BTY/350)
- Membership of clubs (MCA/210)
- Health club and fitness centre (HFC/163)
The company has different schemes for yearly membership and depending upon the terms of the membership they are provided with various services. The services include Spa therapeutic massage, saloon & beauty parlor.
As per definition of “Health club and Fitness centre services” Section 65(51) "health and fitness service" means service for physical well-being such as, sauna and steam bath, Turkish bath, solarium, spas, reducing or slimming salons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service. It specifically excludes the therapeutic massage.
Opinion required on the following issues
- What will be the proportion of fees that is received for whole year membership that can be said to be received in relation to therapeutic massage and hence exempt from service tax.
- Depending on the fact that there are various types of membership available to members and depending upon the type of membership they opts, different sets of services are provided to them, so how to determine the proportion of fees that pertains to fees chargeable for service tax and those not chargeable to service tax.
- If the fees are segregated into taxable fees and non taxable fees then how to determine the input service tax credit that will be allowed to be setoff for payment of service tax.
CAclubindia
