Property tax, electricity charges etc. to be excluded for calculating exemption limit of Rs. 7,500 by housing society: AAR

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 21 February, 2022

Recent Posts

Blog, Income Tax

[Analysis] How to Regularise Irregular Accounts in Small Savings Schemes

Blog, Account & Audit

[Analysis] Chartered Accountants Act – Key Ethical Standards and Compliance

Latest from Taxmann

Club or association - Member's contribution - Maintenance Charges paid to housing society - Tax liability

Case Details: Authority for Advance Rulings, Maharashtra Mahindra Splendour CHS Ltd., In Re - [2022] 135 taxmann.com 71 (AAR - MAHARASHTRA)

Judiciary and Counsel Details

    • Rajiv Magoo and T.R. Ramnani, Member

Facts of the Case

The applicant was a housing society whose main objects were managing, maintaining and administering its property; raising funds for achieving the said objects etc., by way of collecting contributions/charges from members of the society, like Property taxes, Maintenance charges, Water and electricity charges etc. It filed an application for advance ruling to determine taxability of amount collected under GST.

AAR Held

The Authority for Advance Ruling observed that the applicant society and its members are distinct persons and the various charges received by the applicant from its members are nothing but consideration received for supply of goods/services as a separate entity. The exemption as per the entry No. 77 of the Notification No. 12/2017 CT (R) would be available only when a member’s contribution per month is up to an amount of Rs. 7,500. A member, who shall contribute an amount which is more than Rs. 7,500, would not be eligible for the exemption under entry No. 77 and the entire contribution amount would be liable to be taxed. However, the charges collected by society on account of property tax, electricity charges and other statutory levies would be excluded while calculating the exemption limit of Rs. 7,500.

Case Review

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

One thought on “Property tax, electricity charges etc. to be excluded for calculating exemption limit of Rs. 7,500 by housing society: AAR”

  1. I AM SHOCKED TO SEE SUCH JUDGEMENTS…WHEN PRINCIPLE OF MUTUALITY IS APPLICABLE, HOW CAN GST BE APPLICABLE?
    I BELIEVE FACTS HAVE NOT BEEN PRESENTED BY TE APPLICANT LAWYERS IN APPROPRIATE COURTS OF LAW
    ONE CANNOT TAX UPON THE SERVICES RENDERED TO ONESELF

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied