Service tax
balaji r
(Querist) 22 January 2016
This query is : Resolved
We are a registered trade union of Managerial class in the PSU Bank. For our Officers', we have promoted a housing project by engaging a reputed builder for construction of flats. The money is mobilised and paid to the builder. Our bye-law provides the promotion of housing activities for the members of the association. As a Trade Union, are we exempted from paying service tax? If so, provide us details. We expect the opinion in this regard at the earliest. Pl guide us. R.Balaji
Suhail A.Siddiqui
(Expert) 22 January 2016
Mr.R.Balaji
Since Trade Union are exempted from Service Tax to the services rendered/provided to the members but builder is not exempted to charge Service Tax on your housing project. 9810043819
balaji r
(Querist) 23 January 2016
Dear Sir, thank you very much for your guidance. In our case, the builder is paying service tax which is claimed from us whenever the invoices are raised. The Service tax department says that the Trade Union if engaged in construction activity for their members will be treated at par with the builder, hence the service tax to be paid. In our case, we have entered into the construction agreement with the builder and the builder is paying the service tax. Is it enough for us, by producing the Service Tax payment details in a certificate from obtained from the builder,giving it to the Service Tax Department. 2. Is it necessary for us to apply for TIN. Please guide us. 3. Please also provide us relevant Section No. relating to the exemption of service tax for the trade unions. R.Balaji
P. Venu
(Expert) 23 January 2016
Any conclusive suggestion would depend upon the terms of contract between the trade union and the builder.
Rajendra K Goyal
(Expert) 23 January 2016
The activity is not related to trade union activity, the version of the department is right.
