maintenance in commercial apartment

Dear sir

ours is a commercial complex building constructed by our company and sold to different corporates. now all corporates have occupied and we need to collect the maintenance from them monthly. But the corporates are asking for a service tax bill for maintenance from our company. if an association formed naming that "owners welfare associaiton" or so is it possible to avoid this tax liability.

otherwise what is the way out to avoid this tax liability since it is a collection for building  maintenance like a residential complex there is no difference this is not a business activity of our company and there is no profit element in this.

can any body suggest a better idea to come  out of this liability.

thanks in advancek.

Radhakrishna
hyderabad
Asked 1 year ago in Service Tax from Hyderabad, Telangana
Hello,

As per the circular no 175/01/14-st gives exemption to RWA which collects maintenance from its members upto Rs 5000 per month. If maintenance exceeds Rs 5000 per month service tax shall be liable to be paid.

Only the Resident Welfare Association are exempted , if the maintenance charges are collected by builder sevice tax is liable to be paid.

Thanks & Regards,

Ria Nagpal 
Ria Nagpal
CA, Ahmedabad
46 Answers
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RWA is exempt from service tax if membership fee received from members is below 5000 rs. Per month.
Abhishek Dugar
CA, Mumbai
1900 Answers
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Hello Sir,

My advice is why to get under litigation, when Service Tax is not a cost/ burden on you. You can very well charge it to the corporates and pay it to the Government.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
1680 Answers
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