No Service Tax on Clubs/Associations incorporated before 1.7.2012

Commissioner of Service Tax Vs Sobha Developers Ltd (Karnataka High Court) The issue under consideration is whether the principle of mutuality is applicable to services provided by the club to its members and does not amount to rendition of service from one person to another and would not be considered as taxable service for the purpose of levy of service tax. The respondent, Sobha Developers Limited is engaged in the business of construction of complexes and roads under the category “construction of complex services and works contract service” under the Finance Act, 1994. On the ground th...