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Q. > Please Help: Service tax on Maintanance charges collected by RWA from its members.
1. What was the implication of service tax on maintenance charges collected prior to 2012? When negative list was introduced in July 2012, many experts started discussing and advising societies to take registration numbers. This brought us to the presumption that no service tax was applicable to societies prior to that. So what was the exact position prior to that or what was the exact change that was brought in which made the experts start discussing about it so seriously?
2. After 2012 it was notified that if per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be charged service tax. But in January 2015, there was an appeal filed with CESTAT and the tribunal delivered a judgement based on the principle of mutuality stating that there is no service tax liability. And thus news started flashing that no service tax is chargeable on maintenance charges by any of the co-operative societies in Maharashtra. What is the legal stand thereof as on today?
BY MEHUL
CA Sansaar

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