service tax liability on association of radiation oncologist of india

[Satbir singh wahi]

Kindly Guide.

Association of radiation oncologist of India, a registered society for the education and benefit of Doctor members and Society against Cancer decease.Whether the receipts in form of contribution from members and interest on bank deposit, is taxable under service tax.

[KASTURI SETHI]

It is service to self . As per Explanation 3 to Section 65 B (44) of the Finance Act, 1994,

(a) an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons;

If the association is incorporated under any law, the services provided by such association to its members would be treated as self-service and would be out of definition of service. Hence out of gamut of Service Tax net.

Case laws can be traced out easily.

[Shilpi Jain]

Agree with Kasturi sir. There have also been instances where assesses have applied for refunds of any taxes paid under ST in theese kind of cases

[Satbir singh wahi]

Thanks sir, please give case laws , I need to reply to dept. , they are asking service tax to pay.

[KASTURI SETHI]

Dear Sir,

I am of the view that it is not out of your reach. Only hard work is required to find case laws on this issue.

AI Summary

Self-service exclusion may exempt member contributions and interest from service tax where association provides services to members.
Whether member contributions and bank deposit interest of an association are taxable as services depends on the self-service exclusion. If an association's receipts fund benefits provided exclusively to its members, those services may be treated as service to self and lie outside the statutory definition of taxable service, supporting challenges or refund claims where tax was imposed.