Is FICCI a club, liable to pay Service Tax?
What the FM did not tell them! The FM had a comfortable meeting with the members of the FICCI after the budget, but the wise Minister did not tell them that he has brought their famous organisation under the Service Tax net. As per the proposed amendment to the Act, Taxable Service will include
(zzze) to its members, by any club or association in relation to provision of services, facilities or advantages for a subscription or any other amount;
"club or association" means any person or body of persons providing services, facilities or advantages, for a subscription or any other amount, to its members, but does not include—
(i) any body established or constituted by or under any law for the time being in force; or
(ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or
(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or
(iv) any person or body of persons associated with press or media;
Now Let us see whether FICCI fits the bill.
Sl. No. | Conditions | Does FICCI satisfy the condition? | |
|---|---|---|---|
1 | It should be either of these | A person | Legal person, may be |
Body of persons | Certainly YES | ||
2 | Providing any of these to its members | Service | Doubtful? |
Facilities | YES | ||
Advantages | YES | ||
3 | For either of these | A subscription | YES |
Any other amount | YES | ||
4 | Exclusions | Established under or by any law | Not established by or under any law not excluded |
engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature | Not a charitable, religious or political organisation not excluded | ||
persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature | not excluded | ||
person or body of persons associated with press or media | not excluded | ||
So FICCI and all such organisations will be taxed after the Finance Bill is enacted.
Until Tomorrow with more of DDT
Have a Nice Day
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