Industry & Economy
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Industry Associations
Apex chambers under service tax dept lens
K.R. Srivats
New Delhi
,
Aug 14
It may now be the turn of the apex chambers of commerce and industry associations to come under the service tax net with regard to the subscription amounts collected from members.
The four apex industry associations - Assocham, CII, FICCI and PHDCCI - have received letters from the Service Tax Commissioner seeking certain information to ascertain whether they are liable to pay service tax under services provided by a "club or association."
Services provided by a "club or association" to members have been brought under the service tax net with effect from June 16, 2005.
While the service tax administrators contend that organisations like the apex chambers of commerce do fall under the ambit of definition of a "club or association" and should therefore be subjected to service tax on the subscription amount collected from their members, the apex chambers are planning to challenge this viewpoint.
"We have been asked to provide details of the structure of the organisation, amount and reason for taking subscription and the services rendered to the members. They have also sought balance sheet for 2005-06 and the article of association," an official from an apex chamber said.
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