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

Last updated: 02 November 2023
Quick Summary
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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