No Service Tax Leviable on Amount Collected as Advance Fee from Applicants for Membership of Club

Last updated: 02 November 2023

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The CESTAT Bangalore has ruled that service tax is not applicable to advance fees collected from individuals applying for club membership. The tribunal found that the club's activities did not meet the definition of 'service' as per the Finance Act, particularly when membership is not automatic but conditional. This decision clarifies that such advance payments are not taxable under 'Club or Membership Association Service'.

Court :
CESTAT, Bangalore

Brief :
The CESTAT, Bangalore in the case of M/s. Karnataka Golf Association v. The Commissioner of Service Tax and Another [Service Tax Appeal No. 21319-21320 of 2016 dated October 19, 2023] held that no service tax can be levied on the amount collected as an advance fee from the applicants for the membership of the club.

Citation :
Service Tax Appeal No. 21319-21320 of 2016 dated October 19, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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