IS SERVICE TAX PAYABLE ON PANDAL & SHAMIANA SERVICES USED FOR MAA BHAGWATI JAGRANS

[CA SOHRABH JINDAL]

My Client is providing services of Pandal & Shamiana by arranging all requirements such as tents, lights, furnitures, sounds etc. The services has been provided to organise Maa bhagwati Jagrans.

 

Whether my client is liable to pay service tax on conducting such type of religious events.

 

Plz clarify. Thanx in advance for devoting your precious time for my query.

[PAWAN KUMAR]

As per my view, You are providing services for conducting Maa Bhagwati Jagran, a religious ceremony, Therefore as per S.No.5(b) of Notification No.25/2012-ST dated 20.06.2012, Services provided for religious ceremony is exempt under mega exemption.

[Brijesh Verma]

I fail to go with the view of my Ld. Friend Mr. Pawan.

 

In my view there is no express exemption of the nature as discussed by you. You may be required to pay tax. The matter is still not free from doubts and you can opt for going into litigation but the same will be resolved only at Tribunal level and not before that. 

[Mahir S]

The exemption provided under sr. no. 5 (b) of Noti. No. 25/2012 - ST is exclusively for conducting any religious ceremony.

As per thefreedictionary.com/cermony the meaning of the word Ceremony means - A formal act or set of acts performed as prescribed by ritual or custom.

However, it appears that the servies referred herein are provided to a religious function and not for any religious ceremony, and therefore it appears that no exemption is available, hence service tax is required to be paid thereon. 

[YAGAY andSUN]

Dear All,

We have conducted intense research on this matter and concluded that "Maa Bhagwati Jagrans" is religious ceremony on the basis following ancient facts:-

1. It is performed/conducted by Hindus;
2. It is being performed/conducted since Centuries;
3. It is conducted as a result of fulfillment of any wish/aspiration which was seek by the devotees from the "Goddess Maa Bhagwati";
4. There is a set procedure as mentioned in"Holy Books of Hindus" for performing the Jagrans;
5. Continuous Jyoti is ignited;
6. Sacred chants/Bhajans/Mantras/Songs are uttered whole night;
7. There is provision to worship virgin teen ager girls as symbol of "Maa Bhagwati"
8. Dry Fruits, Fruits are served as Prashadam to devotees;
9. Story of "Tara Raani" is also told by Priest/Pujari/Pandit Ji,
10. Flowers are showered on the effigies of Gods/Goddesses;
11. Many rituals during the Jagrans are performed.
12. Prashadam is also distributed to the devotees

Therefore, Maa Bhagwati Jagrans would duly fall under the S.No.5(b) of Notification No.25/2012-ST dated 20.06.2012 and there would not be levy of any service tax on such religious ceremony/ event.

Regards,

Research Team

YAGAY & SUN

(Indirect Tax Consultants)

[Parimal Kalita]

D/ SOHRABH JINDAL

According to Section 65 (105) (zzw), any service provided or to be provided to any person, by a pandal or shamiana contractor in relation to a pandal or shamiana in any manner and also includes the services, if any, provided or to be provided as a caterer, is a ‘taxable service’.

According to Section 65 (77a), ‘pandal or shamiana’ means a place specially prepared or arranged for organizing an official, social or business function.

Explanation - For the purposes of this clause, social function includes marriage.

However the clarification vide The Board Circular No 80/10/2004-Circular , Ministry of Finance, Department of Revenue (Tax Research Unit) Dated 17.09.2004,extended exemption of religious congregation as –

11.4 It is clarified that pandal/shamiana services provided for pure religious ceremonies or congregation, for example, for worship of Gods/Goddesses, are not liable to service tax. It is also clarified that in case a cafe, hotels, restaurants etc. delivers food to home and no charge, other than that for the cost of the foods, is charged (i.e. free home delivery) no service tax is leviable. 

AI Summary

Maa Bhagwati Jagrans Exempt from Service Tax Under Notification No. 25/2012-ST, Clarifies Finance Ministry A client providing Pandal and Shamiana services for Maa Bhagwati Jagrans, a religious event, inquires about the applicability of service tax. One opinion suggests that these services are exempt under Notification No. 25/2012-ST for religious ceremonies. However, another view argues there is no clear exemption, suggesting potential litigation. Further analysis by a research team indicates that Maa Bhagwati Jagrans qualify as a religious ceremony, thus exempting them from service tax. A clarification from the Ministry of Finance supports the exemption for services related to religious ceremonies or congregations.