Service Tax Leviable by Charitable Society looking after Socio-Economic & Welfare Matters of Ex-Servicemen and their Families: Kerala HC

The Kerala High Court has ruled that a charitable society focusing on socio-economic welfare matters of ex-servicemen and their families is liable to pay service tax. The case involved a society providing services such as healthcare, education, and financial assistance to ex-servicemen, which the court determined fell under the purview of taxable services. The court emphasized that even though the society’s primary goal was welfare, it provided taxable services in the form of consultancy, which attracted service tax. This ruling clarifies that tax exemptions available to charities may not apply if the services provided fall within the taxable category. The society’s activities are not exempt from service tax if they involve any business or commercial operations under the Finance Act.