Gopal Khetan
We are a CHS in Mumbai. Kindly guide us in the following matters
a. Electricity charges.
Electricity charges are shown separately, to avoid service tax incidence. Please advise, us if Electricity charges falls under the purview of the service tax. Please also explain what charges, comes under the ambit of service tax .
b. Please note, the builder has charged all members equally corpus fund at Rs.150/- per sq feet basis,which was handed over to the society. However extra benefits are given to members in form of interest rebate in proportion to their corpus fund contribution.
Please advise, if we can give extra benefits to members, in this way.
I C Naik
What charges, comes under the ambit of service tax and what are outside:
As per the clarification given by Jt. Commissioner of Service Tax, Mumbai under Ref. No.V/ST/HQ/Tech/Ref-25/06/1956.
Accounts liable for Service Tax payment :
(i) Common Electricity
(ii) Repairs Maintenance of lifts
(iii) Service Charges
(iv) Car parking charges
(v) Insurance
(vi) Charges for health club, swimming pool, etc.
(vi) Use of terrace, etc for functio is payable.eTaxns to non-members
(vii) Sale of terrace space and compound for hordings
If aggregate amount of (i) to (vii)does not exceed 10 lacs in a year, no service tax liability arises.
Accounts not liable for Service Tax Payments :
(i) Property Tax
(ii) Water/Sewerage Tax
(iii) Contribution to Repairs & Maintenance Fund
(iv) Major Repair Fund
(v) Contribution to Sinking Fund
(vi) Interest on defaulted charges
(vii) Repayment of loan and interest
(viii) Non-occupancy charges
(ix) Lease Rent
(x) Non-Agricultural Tax
(xi) Admission / Entrance Fees
(xii) Issue of shares
(xiii) Deposits
(xiv) Premium on transfer
(xv) Voluntary donations
b. There is no provision in the Bye Laws of Housing Society to give any financial benefits to members