Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 945 - AT - Service TaxClassification of services - Club or Association Membership Service or not? - services provided to independent customers and not the members - appellants are engaged in providing various club facilities to their members - Held that:- The appellant is a private limited company which is engaged in operating and managing ‘Palm Meadows’ club and the Members of the said club are not the members in the strict sense but they are customers of the appellant - the Members of the private limited company are different from the customers. The activities carried out by the appellant does not fall in the definition of ‘Club or Association Membership Service’ as provided in Section 65(25a) of the Finance Act, 1994 - Further, the scope of ‘Club or Association Membership Service’ have been discussed and clarified vide Board Letter MD(DR) F No. B1/6/2005-TRU dated 27.7.2005. It is clarified vide the said Circular that any service provided or to be provided to its Members by any Club or Association in relation to provision of services, facilities or advantages for a subscription or any other amount are liable for service tax. In the present case, the service recipients are totally independent person and they are only the customers who avail services of the appellant independently under the scheme formulated by the appellant. Further, the appellants are not paying the service tax on the entrance fee and are paying service tax with regard to all other services provided by them and it has been admitted by the Manager of the Company in its statement recorded during the investigation. The activities carried out on by the appellant does not fall in the definition of ‘Club or Association’ service - appeal allowed - decided in favor of appellant.
|