Dear SRRF Dialogue Members,
Govt has amended Service Tax effective April 2013 to the detriment of NGO community.
As you may be aware from our earlier posts that effective July 2012 Service Tax was not applicable to NGOs, if two conditions are met, one the NGO possess S.12AA certificate and that it undertakes charitable activities. Charitable activities earlier were largely on the lines of S. 2(15). It specified Charitable Activities as (i) public health, (ii) advancement of religion or spirituality, (iii) advancement of educational programme or skill development, (iv) preservation of environment and lastly (v) advancement of any other object of general public utility up to a value of Rs 25 lakhs in any financial year.
However the last clause has now been removed from the definition of charitable activities effective 1-4-2013. Thus an NGO is no longer exempt if its charitable activities fall under the last clause of General Public Utility.
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Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
Dear Sir,
If am running an NGO, with Govt. Support, in Skill Development Trainings. Eventhough we fall under service tax? Please explain briefly.