TaxTMI 
TaxTMI 
If certain club offer free membership to persons at repute to promote its membership what are the income tax & service tax implications on club
Free membership by club
03 Sep 2015 
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Service tax on club memberships: mutual clubs escape service tax while proprietary clubs attract it; income tax depends on receipts.
Tax treatment of free or waived club membership depends on organisational character: a club operating by means of mutuality is not liable to service tax on free or entrance-fee membership, whereas a proprietary club is subject to service tax; income tax liability turns on actual receipt of income-no receipts, no income tax liability. (AI Summary)
Tax treatment of free or waived club membership depends on organisational character: a club operating by means of mutuality is not liable to service tax on free or entrance-fee membership, whereas a proprietary club is subject to service tax; income tax liability turns on actual receipt of income-no receipts, no income tax liability. (AI Summary)