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2016 (3) TMI 137 - AT - Service TaxWaiver of pre-deposit - Management, Maintenance and Repair Services - Whether notional interest to be taken as value of service - Appellant contended that there is no provision under Service Tax law to adopt notional interest as value of taxable service and as per Notification No.8/07-ST dated 1.3.2007 taxable services specified in clause (zzze) of section 65(105) of the said Finance Act provided or to be provided by a resident welfare association subject to the condition that the total consideration received from an individual member by the said society for providing the said services does not exceed three thousand rupees per month is exempt - Held that: as the appellant provided Management, Maintenance and Repair Services and is not a resident welfare association, the Notification No.8/07-ST dated 1.3.2007 is not applicable to it. The fact is that the service was rendered, and only amount of ₹ 3 lakh per flat owner was collected for this purpose although corpus fund was to be transferred to the welfare association as contended by the appellant but the corpus amount was not transferred by the appellant during the period and it earned interest thereon. Therefore, the notional interest reasonably represents the value of the said taxable service. - Stay granted partly.
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