Housing Societies liable to pay Service Tax
The Mumbai Service Tax Commissioner in his F. No. V/ST/HQ/Tech-25/06/45/5 dated 10.7.2006 has clarified that
++ A person or body of persons by whatever name called whether registered or not, providing services, facilities or advantages for a subscription or any amount is to pay Service Tax.
++ Services can be numerous such as security of premises, up keep of the premises, maintenance of common passage, parking facilities, lifts etc,.
++ The commercial or non commercial nature of such body has no bearing on the levy of Service Tax.
++ Further the legal provision provides for tax even when the services are provided by such body to its own members.
++ A housing society which is registered under the Cooperative Societies Act is a legal entity which provides service to its members and would fall within the scope of this service.(club or association)