Recent case law adjudicating on applicability of Service Tax to Non Profits

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.

Case Source: Central excise, Malabar Hill Citizens Form, Mumbai 2015 (9) TMI 789

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2 Responses to Recent case law adjudicating on applicability of Service Tax to Non Profits

  1. srinivasan says:

    This requires a change in Law to exclude yoga and alied service out of service tax. This has happened in Incoe tax where by the definition of section 2(15) was amended to incluyde Yoga.

  2. vinod seth says:

    Service Tax is a forceful exploitation of public. Especially when it comes on health, training or education. Health, education and skill development in the interest of nations development, when it is under service tax net it looks exploitation and unethical

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