Will yoga classes carried by
charitable institutions for consideration be chargeable to service tax?
Charitable trusts organise yoga
camps or other fitness camps and they generally are not free for participants,
as trusts charge some amount from the participants in the name of accommodation
or participation. As donation is received for participation, it will be
considered commercial activity and it will definitely be covered under the
service tax net.
As per entry 4 of Mega Exemption Notification 25/2012 Dated 20.06.2012, any
service by way of charitable activities by an entity registered under section
12AA of the Income tax Act, 1961 is exempt from service tax. Till 20th
Oct’ 2015, the charitable activities did not include the yoga within its ambit.
Consequently, the activity of arranging yoga and meditation camp by charitable
trusts was chargeable to service tax.
W.e.f. 21st Oct’ 2015,
the Modi Government has amended the aforesaid definition of “charitable
activity” vide Notification No 20/2015 – ST and
include the word “Yoga” within its ambit.
Thus, w.e.f. 21st Oct’
2015, if trusts are arranging residential or non-residential yoga camps by
receiving donation or other charges from the participants, these will be
considered under charitable activities and accordingly not liable to be taxed.
It is pertinent to note that the
entity must be registered under section 12AA of the Income tax Act, 1961 in
order to claim the exemption.
- See more at:
http://taxguru.in/service-tax/service-tax-yoga-classes-carried-charitable-institutions-consideration.html#sthash.AuM3vWn9.dpuf
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