TaxTMI 
TaxTMI 
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.
service tax on membership fee
08 Aug 2015 
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Point of taxation: advance membership fees are taxable on receipt under POTR, subject to exemption if entity qualifies.
Advance membership fees for an employees' welfare society are generally taxable as Membership of Club or Association Services and, under the Point of Taxation Rules, are taxable on receipt; entitlement to a trade-union exemption depends on the society's character and registration, affecting whether the advance receipt may be exempt rather than taxable when received. (AI Summary)
Advance membership fees for an employees' welfare society are generally taxable as Membership of Club or Association Services and, under the Point of Taxation Rules, are taxable on receipt; entitlement to a trade-union exemption depends on the society's character and registration, affecting whether the advance receipt may be exempt rather than taxable when received. (AI Summary)