Collecting the Deposit from Apartment Members

[MUNIRAJ SRINIVASAN]

Dear Sir,

My client is registered under the society in Apartment and collecting the Member fee from its members and same amount has to spend for construction of wall and repairing the water line whether service tax is applicable or not? can give any notification or any case law

AI Summary

Service tax on RWA member contributions: entire member contribution becomes taxable if threshold exceeded under recent circular.
Contributions collected by RWAs for common services are exempt up to a prescribed monthly ceiling per member; if a member's contribution exceeds that ceiling, the entire contribution of that member becomes ineligible for the exemption and service tax is leviable on the aggregate amount. Payments collected and remitted by the RWA as a pure agent for members, meeting rule conditions, are excluded from taxable value. The threshold exemption for small providers excludes exempt services from aggregate value. CENVAT credit may be availed and used for service tax payment.