The residents welfare association (RWA) of Rising Sun Housing Society in Mumbai provides the following information with respect to the various amounts received by it in the month of September, 2015: Particulars ₹ Monthly

Computation of Value of taxable services and service tax liability of RWA of Rising Sun Housing Society for the month of September, 2015 (Alternative 1) Sr. No. Particular Amount (in ₹) 1. Monthly maintenance charges from member families - 2. Amount collected towards electricity charges levied by State Electricity Board on the members of RWA - 3. Amount collected towards electricity charges levied by State Electricity Board on RWA in respect of common area 4,00,000 4. Proceeds from sale of entry tickets to cultural programme held on the park of the society 40,000 5. Proceeds from sale of space for advertisement in members directory 3,00,000 6. Fees received from two members who sold their flats 20,000 7. Total value of taxable services (inclusive of service tax) 7,60,000 8. Value of taxable services (excluding service tax) (₹7,60,000 x 100/114) 666,667 9. Service Tax Liability (₹666,667 x 14%) 93,333 Notes: Exempt as contribution per member is below ₹5,000 as per mega exemption notification. It is excludible as the RWA is acting only as a pure agent of the member for remitting the bill. Amount collected for maintenance of common facilities, other than monthly maintenance is chargeable to service tax. It is taxable with effect from 14th May, 2015, earlier it was covered in the negative list under clause (j) of section 66D of the Finance Act, 1994. Further, the bifurcation of ₹40,000 collected from each family is not available, therefore it is assumed the amount of ₹40,000 is the consolidated amount and above the limit prescribed i.e. ₹5,00 per person and therefore consider it chargeable to service tax. Taxable as only selling of space for advertisement in print media is included in the negative list under clause (g) of section 66D of the Finance Act, 1994. If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Computation of Value of taxable services and service tax liability of RWA of Rising Sun Housing Society for the month of September, 2015 (Alternative 2) Sr. No. Particular Amount (in ₹) 1. Monthly maintenance charges from member families - 2. Amount collected towards electricity charges levied by State Electricity Board on the members of RWA - 3. Amount collected towards electricity charges levied by State Electricity Board on RWA in respect of common area 4,00,000 4. Proceeds from sale of entry tickets to cultural programme held on the park of the society - 5. Proceeds from sale of space for advertisement in members directory 3,00,000 6. Fees received from two members who sold their flats 20,000 7. Total value of taxable services (inclusive of service tax) 7,20,000 8. Value of taxable services (excluding service tax) (₹7,20,000 x 100/114) 6,31,579 9. Service Tax Liability (₹6,31,579 x 14%) 88,421 Notes: Exempt as contribution per member is below ₹5,000 as per mega exemption notification. It is excludible as the RWA is acting only as a pure agent of the member for remitting the bill. Amount collected for maintenance of common facilities, other than monthly maintenance is chargeable to service tax. It is taxable with effect from 14th May, 2015, earlier it was covered in the negative list under clause (j) of section 66D of the Finance Act, 1994. Further, the bifurcation of ₹40,000 collected from each person is not available; therefore it is assumed the amount of ₹40,000 is within the limit prescribed i.e. ₹5,00 per person (₹40,000 / 200 person = ₹200 per person) and therefore exempt from service tax. Taxable as only selling of space for advertisement in print media is included in the negative list under clause (g) of section 66D of the Finance Act, 1994. If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification.