Club or Association + Service Tax Ambit

[Vartik Choksi]

Dear all,

Let us Know the following :

Our issue pertains to the year back in 2005 and the Particulars of the  Query is as follows:

(1)  What was the Rationale for bringing the Services provided by the Club or Associations under the Service tax Ambit ?

(2) Specific Service provided by the above club or Association  : Tour operator Service

Pls give the replies keeping in view following Facts

Regards

Parth kapoor  

 

[NEERAJ KUMAR, RANCHI]

Hi

It is really difficult to tell the rationale behind the decision taken by government. But as far as I understand I tell you,

Service tax on mandapkeeper was effective prior to 2005, department was demanding service tax on the services provided by clubs as manndapkeeper, like letting out their halls or gounds for social functions, Some clubs went to High Courts agasint such action of the department.  H C promulgated in many case like saturday club case that since club and its member are one person so service tax provided by a club to its member is not taxable. In view of this I thing tax on club was levied in 2005.

[Vartik Choksi]

Thanx

AI Summary

Service tax on club services expanded after member-exemption rulings, bringing club tour operator and mandapkeeper activities into tax ambit. Service tax was extended to services provided by clubs and associations in 2005 after departmental demands and high court rulings that services to members were non-taxable; the levy targeted services rendered to non-members and commercial activities such as letting premises and tour operator services, bringing those club-provided services within the service tax ambit despite the member-exemption principle.