Will service tax to be charged by a charitable entity proving consultancy in india?
Answer:
The only criteria of exemption is the limit of Rs.400,000 (i.e. if an entity is offering services (even a taxable one) below the thresh-hold limit of Rs.400,000 per annum, it will not have to pay any service tax. But this exemption is for whole of services (total income of the entity in a year for all type of chargeable services). For more info, you may log on to www.servicetax.gov.in
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Generally service tax is not levied on Charitable organsiations. At the same time the new finance Bill (Budget 2006) changed this by altering teh definition for chargeability. The word 'commercial concern' was changed to 'any person'. Thus there is a possibility for levy.
It depends on exact nature of services( so that it must fit within a taxable service category), whether the Charity is doing business in India, whether its charging for these services, costs incurred by it and so on. SO without details its hard to tell with little detail.
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