Baba Ramdev's YOGA under Service Tax Net?
THE DGCEI is reported to have issued a Service Tax demand of Rs. 4.94 Crores on Baba Ramdev's Patanjali Yog Peeth, for evading Service Tax on the fees collected for yog shivirs. Investigation into other trusts by the Baba is also on.
Is the Baba liable to pay Service Tax?
As per clause (51) of Section 65 the Finance Act, 1994, "health and fitness service" means physical well being service such as, sauna and steam bath, turkish bath, solarium, spas, reducing or slimming salons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service.
As per clause (105)(zw), the taxable service is any service provided to any person, by a health club and fitness centre in relation to health and fitness service. "Health club and fitness centre" means any establishment including a hotel or a resort providing health and fitness service.
Board had clarified that:
Health and fitness services are provided by clubs, fitness centers, health saloons, hotels, gymnasium and massage centers. The services which fall under this category might be for weight reduction and slimming, physical fitness exercise, gyms, aerobics, yoga, meditation, reiki, sauna and steam bath, Turkish bath, sun bath and massage for general well being .
The Baba's spokesperson thinks that:
1. we don't fall under the ambit of service tax, as we're not earning commercial profit out of yoga camps
2. yoga has been excluded from the list of services like massage and spa from levying tax, as yoga is considered a therapy to provide medical relief.
3. We've been conducting yoga camps for two decades, but never before received any tax notice
These are generally the reactions of any person accosted with a Service Tax notice – babas included. He also said that he make an appeal against the notice. In Service Tax, as in Cricket, everyone has an expert opinion.