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Service Tax on Semi annual dues

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  • Madhukar Malhotra
    Dear Rotary Leaders, This is insane, we contribute to serve & take up work that the government should be doing but is unable to do, & to be asked to pay
    Message 1 of 1 , Apr 2, 2013

      Dear Rotary Leaders,

      This is insane, we contribute to serve & take up work that the government should be doing but is unable to do, & to be asked to pay service tax on that? Can one of our legal or CA luminary members guide us & maybe seek a stay

      Will await your inputs
      Regards
      Madhukar Malhotra

      Greetings from Rotary International South Asia Office.
       
      Please find  the below message sent to all the  current club Presidents, Secretaries and Treasurers for your kind perusal. Kindly inform the clubs in your district that in future they need to pay the service tax @ 12.36% (current prevailing rate) on the membership dues and on other components as mentioned below while making their payments to Rotary International South Asia office.
       
      Thank you and with best regards,
      Prasanta Kumar Sahu
      Manager Legal 
      HR & Admin Section
      RI South Asia Office
      Email
      : Prasanta.Sahu@...
      Website :www.rotary.org
      Tel : (91-11) 4225-0116
      Fax : (91-11) 4225-0191 and 4225-0192
       
      _______________________________________

       
       


      25 March 2013
      Dear Sir / Madam,
      Sub:    Applicability of service tax on Rotary International South Asia Office (‘RISAO’), with effect from 1 July 2012
      Under the Negative List base service tax effective 01 July 2012 regime, the activities of RISAO have been brought within the service tax ambit. Thus RISAO is liable to pay service tax currently @ 12.36% i.e.12% service tax plus 3% cess (2% Education cess and 1% Higher Education cess ) on the various considerations received and collected from the Rotary clubs, with effect from 1 July 2012. This view has been formed by RISAO based on opinion from consultants and discussions with the Central Board of Excise & Customs, Ministry of Finance.
      Hence, we would like to mention that RISAO will be collecting service tax on the following types of revenues collected and considerations received from Rotary clubs:
      ·                     Semi-Annual membership dues ( per capita, pro-rata & COL) excluding ‘TR’ magazine;
      ·                     Reinstatement fee of terminated Rotary clubs;
      ·                     Recharter fee of terminated Rotary clubs;
      ·                     Charter fee from new Rotary clubs;
      ·                     Charter fee for new Rotaract clubs sponsored by the Rotary clubs;
      ·                     Election Complaint Bond;
      ·                     Registration fee for convention;
      ·                     Registration fee for booth-booking;
      ·                     Other services as may be applicable under service tax ambit from time to time.
      Rotary clubs are therefore informed that service tax is payable by them effective 01 July 2012 and will accordingly be receiving supplementary invoices or recovery notes pertaining to the service tax payable on various applicable components mentioned above for the period July 2012 and Jan 2013.
      In future, you are requested to add the service tax @ 12.36% (current prevailing rate) along with all of your payments as mentioned above to Rotary International South Asia Office.   This tax will be included on future SAR invoices that Rotary sends to your club.
      Thank you for your continuing service to Rotary, if you have questions about the service tax, please contact me for more information.
       
      Prasanta Kumar Sahu
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