Entity Registered Under Section 12AA of Income Tax ACT is liable to pay Service Tax

[rahul mittal]

Dear Sir,

An Entity is registered under Society Registration and also obtained certificate under section 12AA of Income Tax Act, and the society has organized an educational program for its members of the society and society has received an contribution from the members of the society and out siders for a specific purpose is liable to pay the service tax or not.

[Mahir S]

Sir,

Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities are exempted from payment of service tax.

AI Summary

Charitable activity exemption: services by entities registered under section 12AA are not subject to service tax when charitable. Services rendered by an entity registered under section 12AA that are delivered by way of charitable activities fall within the exemption from service tax; where the educational programme and associated contributions qualify as charitable activities of the registered entity, those services are not liable to service tax.