Would a public trust be exempt from service tax and vat?
22-Jul-2023 (In Corporate Law)
We want to set up a trust which online sells organic vegetables, fruits and other produce. Small percentage of the money paid by customer goes towards maintenance of the site. Would such a public trust be exempt from service tax and vat
Notification No. 25/2012 dated 20th June 2012 exempts from whole of service tax services provided by charitable trusts registered under Section 12AA of the Income-tax Act, 1961 by way of charitable activities.
But a broad analysis of this notification and all other service tax provisions reveals that all services provided by such charitable trusts are not exempt.
Please refer the notification. As per the said notification, your services will not fall in such catagory.
Further VAT is a subject matter of State, so you will have to specify the State and then we will be able to address your query
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