Trust Registartion

[Asked by Guest]

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?

AI Summary

Service tax exemption for charitable trusts limited to registered trusts performing specified charitable activities only.
Services of a trust are taxable unless they meet the restrictive exemption: the trust must possess recognised registered charitable status and the particular activities must qualify as "charitable activities" under the notification's listed categories (public health, advancement of religion, targeted educational or skill programs, environment, or public utility within specified monetary limits). Temporary letting of banquet rooms will be taxable unless it can be demonstrated to fall within those prescribed charitable activities.