Service tax- Urgent Query

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Deepak Garg

Student

35 Points Posted on 05 October 2014

Explanation 2. to Section 65B (44)––

For the purposes of this Chapter,—

(a) an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons;

(b) an establishment of a person in the taxable territory and any of his other establishment in a non-taxable territory shall be treated as establishments of distinct persons.

My query is as follows:

Incorporated association or body of persons and its members are distinct person or not??? and whether Service Tax is applicable on service provided by an incorporated association or body of persons to its members???

Replies (2)

Harshal Fifadra

Chartered Accountant

1249 Points Posted on 06 October 2014

Incorporated association or body of persons and its members are distinct persons. Service Tax is applicable on service provided by the incorporated associations to its members.

Explanation 2 to section 65B(44) expalins about the exceptions which shall be taxable.

Incorporated associations are not covered by such exception.i.e explanation 2 because they are covered within the regular definition .