• Is BPO running NGO project liable for service tax?

If a BPO running a NGO project (fund raising), will that BPO be liable for service tax?
Asked 3 years ago in Service Tax from Bangalore, Karnataka

Yes even NGO's are liable for service tax, mere exemption under Income Tax doesn't qualify it for exemption under service tax. Levy of service tax is entirely governed by provisions of service tax and the status of the service provider is not important, unless stated explicitly in the act.

Swapnil Patil
CA, Navi Mumbai
30 Answers
4 Consultations

4.6 on 5.0

Under the Finance Act 1994 , every service is taxable unless it is in Negative list . Further there are certain services on which the service tax has been exempted vide notification no 25/1012 which has been amended time to time . The service provided by the BPO is not covered under the Negative list . Further testing this services in the entry no -4 of the mega exemption , the exemption has been given to the services provided by entities registered under section 12AA of the Income Tax act by way of charitable activities . In this case the services are being provided by the BPO and not the NGO and further it is not clear whether the NGO is registered under section 12AA. In view of the above , the BPO services should be taxable .

Prakash Sinha
CA, New Delhi Area, India
120 Answers
17 Consultations

4.9 on 5.0

Yes you are liable for the service tax.

Kavit Dilip Gadhia
CA, Mumbai
35 Answers

4.6 on 5.0

Your question is not clear. Are you trying to say that the BPO is running a NGO or doing some work for an NGO?

Shashank Surana
CA, Chennai
60 Answers
4 Consultations

4.3 on 5.0

Dear Sir,

To avoid complications and cutting long things short. The Service Tax Department has issued a Negative List of persons/assesse not liable for Service Tax. Any assesse out of the bracket of Negative List is liable for Service Tax.

In your case neither the BPO nor the NGO falls under the bracket of Negative List.

Hence you are liable for Service tax.

Rohit R Sharma
CA, Mumbai
2104 Answers
92 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA