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Service tax on sec 25 companies under it

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Regional Accounts Manager
80 Points Joined October 2011

Dear All,

Please let me know applicability of service tax on Section 25 companies under IT Act. Is there any exemption for these type of companies under service tax.

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On 25 December 2012 at 12:08 Report
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Kolkata-Pune-Mumbai
27454 Points Joined October 2007

 

 Dear Friend,
 
Till the Finance Act 2005, most of the NGOs, 
not being ‘commercial concerns’ were exempt 
from charging service tax. The Finance Act 2006 
has substituted references in the Finance Act, 
1994 to the expression ‘commercial concern’ 
in relation to 17 taxable services, with the 
term ‘person’ or ‘any person’. The implication 
of this is quite wide and now even a nonprofit making entity, say a charitable trust 
or a company registered under section 25 of 
the Companies Act, is liable to pay tax and is 
eligible to take credit of such tax paid on its 
input services. Thus, if any of the activities of 
an NGO falls under any of the services covered 
in clause 105 of section 65 of Finance Act 1994, 
care should be taken to ascertain service tax 
implications.

 

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On 25 December 2012 at 12:59
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Kolkata-Pune-Mumbai
27454 Points Joined October 2007

Apart from This,

There Was One Rulling of CESTAT, in 2008, GLIM - 2008/11 -CESTAT Held in Favour of Assessee, Since This is Not a Concluded Hearing, We Cant Undertake This assumption.

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On 25 December 2012 at 13:03
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CA in service & CS. dipmaj@
3492 Points Joined June 2011

Nicely expalined by Ayush.

Regards,

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On 26 December 2012 at 12:01

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