Dear Sir,
A trust meant for social service wants to let out (temporary) its banquet and rooms for ceremonies like marriage, Satsang, seminar and social functions etc. queries are;
1. whether trust (Non profit organisation) is liable for service tax?
2.If yes, which service because this is not type of permanent let out or renting out.
3.whether any exempted service for Trust?
4.if yes then whether it is liable for reversal of CENVAT on exempted services?
Charitable Trusts' Service Tax Liability: Exemptions Under Notification No. 25/2012 and Section 12AA Explained for Event Rentals. A trust involved in social services inquired about its liability for service tax when temporarily renting out its banquet and rooms for events. The response clarified that services provided by charitable trusts are generally taxable unless exempt under specific conditions. According to Notification No. 25/2012, exemptions apply if the trust is registered under section 12AA of the Income Tax Act and the activities qualify as charitable. Charitable activities include public health, religious advancement, education for disadvantaged groups, environmental preservation, and other public utilities within specified financial limits. The exemption is restrictive and not all activities are covered. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
