Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Service tax on repair fund

Queries 432 views 1 replies

ars

445 Points Joined February 2009

A co-operative hsg. soc. is contmeplating to collect certain amount from each of its members to carry out the major repair work of the premises. The amt. may be more than Rs. 40 lac in a year.

Is the service tax applicable on the amount collected over and above the normal maintenance charges form the members? is there any ceiling limit?

or it is applicable only when the sevice provider raises invoice or provide service?

can the society get cenvat?

pl. reply asap.

Replies (1)

In my view., As per POT(Point of Taxation) Rules in Service Tax 'advance receipts' also falls under taxable event in which month it is received..Ie.,Date of service provided OR Receipt WHICHEVER IS EARLIER subject to issuance of invoice within specified days...2'nd thing Co-Op society is eligle for CENVAT credit as provider of service upto 30 limits bcos it is avail basic exemption for 10 lacs (if regd in dept) from 40lacs..Why it avails Cenvat i dnt know bcos whether it is 'manufacturer' as per Central excise act ie.,is dis pay excise duty'ah..? Or has providing Services in generally to all TO USE THE CREDIT...