Service Tax AmendmentsBinita Ramchandani and Rohan Rao.Introduction:
Recent amendments in the service taxprotocols will prove beneficial to smaller housingsocieties.
The central governments has notified to levy service tax on only those societies where the maintenance charges paid by members of society exceeds Rs 5000 per month and the overall gross collection of the society is more than Rs. 10 lakhs per annum. This has ensured that middle and lower income group societies will be exempted from these taxes. This is definitely advantageous to a major percentage of our populace city.However the societies having its annual collections exceeding 8lakhs will have to cough out service tax at 12.36 %.
Both the clauses of a member paying 5000 per month, as maintenance charges and the society's collection exceeding 8lakhs per annum must be fulfilled for a society to fall in the bracket of service tax. In case, the society collects more than 10lakhs per annum, but the contribution from individual members is less than 5000 per month, the society is not liable to file service tax returns."Laws are made for the welfare of the people and one must not doubt its intentions. This law is implemented so as to concentrate on a particular section of the society," says Mr. S.J.Singh, Commissioner of Service Tax Department. The new law is in effect from 1st April 2007. There are more than23 thousand registered housing societies in Mumbai and Thane.Out of these over 90 percent of the societies charge less than3000 rupees for maintenance purposes. This has ensured that more than 90 percent of the societies sheltering the populacecity will be excluded and only very high premium residential projects will be filing the returns
Both the clauses of a member paying 5000 per month, as maintenance charges and the society's collection exceeding 8lakhs per annum must be fulfilled for a society to fall in the bracket of service tax. In case, the society collects more than 10lakhs per annum, but the contribution from individual members is less than 5000 per month, the society is not liable to file service tax returns."Laws are made for the welfare of the people and one must not doubt its intentions. This law is implemented so as to concentrate on a particular section of the society," says Mr. S.J.Singh, Commissioner of Service Tax Department. The new law is in effect from 1st April 2007. There are more than23 thousand registered housing societies in Mumbai and Thane.Out of these over 90 percent of the societies charge less than3000 rupees for maintenance purposes. This has ensured that more than 90 percent of the societies sheltering the populacecity will be excluded and only very high premium residential projects will be filing the returns
On Fri, Apr 6, 2012 at 5:04 PM, Gurpreet Singh <gurpreet.kohli@gmail.com> wrote:
As per recent notice from CSK, from this month onwards we are supposed to pay increased service tax where as per the finance budget notification there should be no service tax on maintenance charges upto Rs 5000.
We should take this matter with CSK asap otherwise CSK would be illegally pocketing a handsome amount every month from all of us as service taxes.
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Gurpreet Singh
Mobile: 91-9810652486
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