Club or Association Service [Section 65(105)(zzze)], Service Tax

[Jiten Patel]

Services provided by a club or association to its members are already subject to tax since 2005.

Now with the amended definition Services provided to Non-members to use their facilities in their own capacity for a separate charge is brought to tax net.

Issue : if Movie Ticket is booked in Portal by any Employee, amount of Ticket is shown as recovery in Salary of the Employee under the head  CLUB MEMBER SHIP FEES,

RQST TO KINDLY ADVICE RECOVERY / REIMBURSEMENT CHARGES WILL FORM PART OF TAXABLE SERVICE ?

Posts / Replies

[Rama Krishana]

IT is the arrangement between the employer and service provider (portal) would help to determine the real nature of service. Mere nomenclature "Club Membership Fees" for booking of movie ticket is raising some doubt about the arrangement and difficult to say anything.

Recovery / reimbursement of expenses are part of taxable service and liable to taxed if the main service is otherwise taxable.