CORPORATE TAX UPDATE FOR 27th OCTOBER 2015
CORPORATE TAX UPDATE FOR 27th OCTOBER 2015
New case law adjudicating on applicability of Service Tax to Non Profits
Case Source: Central excise, Malabar Hill Citizens Form, Mumbai 2015 (9) TMI 789
Recently, in the matter of Malabar Hill Citizens Forum Versus Commissioner – Central Excise, Mumbai, Mumbai CESTAT held that amounts collected for conducting Aerobics and Yoga classes would fall under Health & Fitness Services and accordingly would be chargeable to service tax. CESTAT has relied on the judgment given by same bench in the case of Osho International Foundation, Neo Sannyas Foundation Versus Commissioner of Central Excise, Pune, 2015 (6) TMI 441 – CESTAT MUMBAI, dt. 27th May, 2015.
In this case, Mumbai CESTAT referring the definition of Health & Fitness services has ruled out the plea of the appellant that they are a charitable institution. It has observed that an entity whether charitable or otherwise would be covered under the term ‘any establishment’ and thus, would fall under the taxable service category of Health & Fitness services.
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