Exemption to Residential Welfare Association (RWA)
The Government has issued Circular F.No. 137/68/2007-CX.4
dated 8-5-2007 to clarify the applicability of exemption Notification No.
8/2007-ST dated 1-3-2007 to RWA. Accordingly, it has been clarified that,
The RWA, even if registered as co-operative society with
Registrar of Co-operative Societies, is eligible to avail exemption.
The sole criterion for membership of the RWA is the
residential status of the person in a residential complex or locality; i.e.,
the membership of the association should be restricted only to the residents
of the complex or the locality.
The value of total consideration received from an
individual member by the association for providing the service should not
exceed Rs. 3000/- per month.
Note
: RWA are covered under Club or Association
Service.
Comments
It was expected that some clarification would be given on
chargeability of service tax on co-operative housing societies (CHS). However,
the impugned circular raises more doubts, then clarifying the issues relating to
CHS. It is obvious that all RWAs are not registered CHS.
Applicability of service tax on entry and exist load
charged by the Mutual Fund
The Government has issued Circular No. 94/5/2007-ST dated
15-5-2007, clarifying as follows,
Entry and exist load charged by an Asset Management Company
(AMC) are not towards Funds Management Service but to meet the initial issue
expense and other specified expenses incurred by the Mutual Fund and therefore
not liable to service tax under the category of Fund Management Service
The investment advisory fee (periodic recurring fees), in
accordance with SEBI Regulations, charged by AMC to the mutual fund is
chargeable to service tax under Fund Management Service
Service provided by the distributors, selling agents,
brokers, custodians, trustees etc. to the mutual funds is taxable under
respective taxable service such as Business Auxiliary Service, Stock Broking
Service and Banking and Other Financial Services
Withdrawal of certain circulars
(Circular No. 93/04/2007-ST dated 10-5-2007)
The Board has withdrawn 48 circulars/instructions with
immediate effect, based on Rustagi Report on review of service tax circulars as
it is felt that they had lost the relevance due to change in law etc.
Some of the important circulars that have been withdrawn:
|
Circular No./F.
No. |
Date
|
Subject
|
|
38/1/2002-ST |
7-2-2002
|
Audit of
service tax assesses/ records |
| 56/5/2003-ST |
25-4-2003
|
Non levy
of service tax on export of services |
|
57/6/2003-ST
|
20-5-2003
|
Irregular levy of service tax by the service providers @ 8% after
budget; i.e., 1-3-2003 – regarding |
|
65/14/2003-ST |
5-11-2003 |
Payment
of service tax in case of advancepayment of value of services |
|
70/19/2003-ST |
17-12-2003 |
Clarification on the taxability of maintenance of computer software |
|
354/106/2005-TRU |
8-8-2005
|
Centralised registration |
Comment
Many of the withdrawn circulars are unknown to trade and
industry and also not available on CBEC website. It is therefore futile to give
the list of all circulars that have been withdrawn. However, some of the
important circulars that have been withdrawn are given above.
