service tax on membership fee

[satbir singhwahi]

A Society for welfare of employees is receiving membership fee. Amount of fee is received for three years in advance. Whether this fees is to be bifurcated into 3 years for calculating basic exemption of 10 lacs.If it receives ₹ 27 lacs in first year (for three years membership) , whether service tax applicable or we can bifurcate to three years and avail basic exemption.

AI Summary

Debate on Service Tax: Is a 27 Lakh Membership Fee Taxable Upfront or Exempt for Trade Unions? A discussion on a forum addresses whether a society collecting a 27 lakh membership fee for three years in advance is subject to service tax or if it can be divided over three years to benefit from a basic exemption. One participant suggests that if the society functions as a trade union, it might be exempt under a specific notification. Another argues that the entire amount is taxable in the first year as per the Point of Taxation Rules, 2011. The conversation also touches on the classification under the Finance Act and the applicability of exemptions.