Service tax on rwa

ritesh (Querist) 20 May 2013 This query is : Resolved
A RWA collects rs 2000 per month from all falt owners in the society and rs 5000 per year. Total flat in the society 150. collection approx 43.50 lacs. If service tax exemption is applicable to this RWA. As earlier rs/ 3000 per month was exempt under a notification of 2007. But now all service are taxable except negative list or srevice covered in mega exemption. can anyone clarify if it covers under negative list or mega exemption. or previous exemption notifiction is still applicable.

Follow Query

Report Abuse

Raj Kumar Makkad (Expert) 21 May 2013
No service tax is liable to be paid by RWA because it do not provide service to others rather its own members jointly arrange for the management of some essential services.

ritesh (Querist) 21 May 2013
Sir, Can you confirm if it makes any difference if the residents runs the RWA under a society which has been registered for this purpose only. And if there is any income tax liability on the surplus funds means excess of income over expenditure.