Applicability of service tax on Rotary International South Asia Office (‘RISAO’), with effect from 1 July 2012

Dear District Governors:

Greetings from Rotary International South Asia Office.

Please find the below message sent to all the current club Presidents, Secretaries and Treasurers for your kind perusal. Kindly inform the clubs in your district that in future they need to pay the service tax @ 12.36% (current prevailing rate) on the membership dues and on other components as mentioned below while making their payments to Rotary International South Asia office.

Thank you and with best regards,

Prasanta Kumar Sahu

Manager Legal
HR & Admin SectionRI South Asia Office
Email: Prasanta.Sahu@rotary.org
Website :www.rotary.org
Tel : (91-11) 4225-0116
Fax : (91-11) 4225-0191 and 4225-0192 _______________________________________
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25 March 2013 Dear Sir / Madam, Sub: Applicability of service tax on Rotary International South Asia Office (‘RISAO’), with effect from 1 July 2012 Under the Negative List base service tax effective 01 July 2012 regime, the activities of RISAO have been brought within the service tax ambit. Thus RISAO is liable to pay service tax currently @ 12.36% i.e.12% service tax plus 3% cess (2% Education cess and 1% Higher Education cess ) on the various considerations received and collected from the Rotary clubs, with effect from 1 July 2012. This view has been formed by RISAO based on opinion from consultants and discussions with the Central Board of Excise & Customs, Ministry of Finance. Hence, we would like to mention that RISAO will be collecting service tax on the following types of revenues collected and considerations received from Rotary clubs: · Semi-Annual membership dues ( per capita, pro-rata & COL) excluding ‘TR’ magazine; · Reinstatement fee of terminated Rotary clubs; · Recharter fee of terminated Rotary clubs; · Charter fee from new Rotary clubs; · Charter fee for new Rotaract clubs sponsored by the Rotary clubs; · Election Complaint Bond; · Registration fee for convention; · Registration fee for booth-booking; · Other services as may be applicable under service tax ambit from time to time. Rotary clubs are therefore informed that service tax is payable by them effective 01 July 2012 and will accordingly be receiving supplementary invoices or recovery notes pertaining to the service tax payable on various applicable components mentioned above for the period July 2012 and Jan 2013. In future, you are requested to add the service tax @ 12.36% (current prevailing rate) along with all of your payments as mentioned above to Rotary International South Asia Office. This tax will be included on future SAR invoices that Rotary sends to your club. Thank you for your continuing service to Rotary, if you have questions about the service tax, please contact me for more information. Prasanta Kumar Sahu prasanta.sahu@rotary.org