Club membership deposit

[Mukund Honkan]

If certain club takes deposit repayable after certain no of years & do not charge any fees, what will be direct & indirect tax implications

[DR.MARIAPPAN GOVINDARAJAN]

There is no effect. Deposit will not be considered as income or revenue. Therefore refund of deposit is having no implication in direct and indirect taxes.

AI Summary

Deposits Accepted by Clubs Not Considered Income; No Direct or Indirect Tax Implications on Refunds A query was raised regarding the tax implications of a club accepting deposits repayable after a certain number of years without charging any fees. The response clarified that such deposits are not considered income or revenue. Consequently, the refund of these deposits does not have any implications for direct or indirect taxes.