Services provided by a club or association to its members are already subject to tax since 2005.
Now with the amended definition Services provided to Non-members to use their facilities in their own capacity for a separate charge is brought to tax net.
Issue : if Movie Ticket is booked in Portal by any Employee, amount of Ticket is shown as recovery in Salary of the Employee under the head CLUB MEMBER SHIP FEES,
RQST TO KINDLY ADVICE RECOVERY / REIMBURSEMENT CHARGES WILL FORM PART OF TAXABLE SERVICE ?
Amendment Taxes Club Services to Non-Members; Employee Movie Ticket Cost Recovery May Be Taxable Under Club Fees Services provided by clubs or associations to members have been taxable since 2005. An amendment now taxes services provided to non-members for a separate charge. A query was raised about whether the recovery of movie ticket costs, deducted from an employee's salary under 'Club Membership Fees,' constitutes a taxable service. The response highlighted that the nature of the service depends on the arrangement between the employer and the service provider. If the primary service is taxable, then recovery or reimbursement of expenses is also taxable. (AI Summary)
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