{"id":2794,"date":"2012-06-14T12:40:02","date_gmt":"2012-06-14T07:10:02","guid":{"rendered":"http:\/\/apartmentadda.com\/blog\/?p=2794"},"modified":"2023-11-02T03:44:25","modified_gmt":"2023-11-02T03:44:25","slug":"service-tax-in-housing-society-bills","status":"publish","type":"post","link":"https:\/\/adda.io\/blog\/2012\/06\/service-tax-in-housing-society-bills\/","title":{"rendered":"Applying July-2012 Service Tax changes in your ADDA"},"content":{"rendered":"<p>If you are performing your Society Billing on ADDA, below are the suggested changes for the <span style=\"text-decoration: underline;\">Service Tax reforms of Budget 2012<\/span>.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d67ebcdd4a3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d67ebcdd4a3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/adda.io\/blog\/2012\/06\/service-tax-in-housing-society-bills\/#If_your_Society_already_collects_Service_Tax_from_Members\" >If your Society already collects Service Tax from Members<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/adda.io\/blog\/2012\/06\/service-tax-in-housing-society-bills\/#SCENARIO_1\" >SCENARIO 1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/adda.io\/blog\/2012\/06\/service-tax-in-housing-society-bills\/#SCENARIO_2\" >SCENARIO 2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/adda.io\/blog\/2012\/06\/service-tax-in-housing-society-bills\/#SCENARIO_3\" >SCENARIO 3<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/adda.io\/blog\/2012\/06\/service-tax-in-housing-society-bills\/#If_your_Society_does_not_collect_Service_Tax_from_Members\" >If your Society does not collect Service Tax from Members<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"If_your_Society_already_collects_Service_Tax_from_Members\"><\/span><span style=\"color: #008000;\"><strong>If your Society already collects Service Tax from Members<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Analyze the Billing for 01-July-2012.  For each Flat,&nbsp; calculate the total of the Monthly or Quarterly Recurring Invoice.&nbsp; Subtract the amount paid to local authorities (taxes). Bring the amount to a per month basis. Let&rsquo;s call this amount <strong>Rs.X<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"SCENARIO_1\"><\/span>SCENARIO 1<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If Rs.X does not exceed Rs.5000\/month for any member, no Service Tax to be collected in the July Bill onward.  You can un-select all Income Heads that you had previously selected for calculating Service Tax.  How To:  <strong><span style=\"color: #0000ff;\">Admin Dashboard &gt; Income Tracker &gt; Setup &gt; Auto Invoicing.<\/span><\/strong>  Click &ldquo;Revise Rule&rdquo; next to the relevant Income Head and provide 0.00 for &ldquo;Service Tax Rate&rdquo; field.  Click &ldquo;Preview&rdquo; button and ensure the Invoice looks alright.  That&rsquo;s all.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SCENARIO_2\"><\/span>SCENARIO 2<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #888888;\"><span style=\"text-decoration: line-through;\">Now find the Members owning more than 1 Flat. Add the Rs.X from each of his flats. If the total exceeds Rs.5000\/month, ST will be applicable for this particular Member only, for the amount by which his total collection exceeds Rs.5000\/month<\/span><span style=\"color: #000000;\">.[Updated on 16-June-2012]<\/span><span style=\"text-decoration: line-through;\"> <\/span><\/span>  <\/p>\n<p>If Rs.X exceeds Rs.5000\/month for any Flat, service tax is to be collected only from that Flat. [Updated on 16-June-2012]  <\/p>\n<p><strike>Example: Let&#8217;s assume a Member owns 3 flats. The collection for each flat is Rs.3000. Total the Member pays is Rs.9000. Service Tax will be applicable on Rs.9000 for this Member.  If this is the case for your ADDA, please email finance@apartmentadda.com , with subject &ldquo;SCENARIO 2 positive&rdquo;. We will direct you with the setting.<\/strike><\/p>\n<h3><span class=\"ez-toc-section\" id=\"SCENARIO_3\"><\/span>SCENARIO 3<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If Rs.X exceeds Rs.5000\/month for all Flats, you may not have to make any changes. <\/p>\n<p>However, you may still need to analyze if all relevant Income Heads have been selected for Service Tax collection.  For example, if you had excluded Corpus Fund, Sinking Fund, Utility charges etc. from Service Tax calculation, you need to now select them.  <\/p>\n<p>How To:  <strong><span style=\"color: #0000ff;\">Admin Dashboard &gt; Income Tracker &gt; Setup &gt; Auto Invoicing.<\/span><\/strong>  Click &ldquo;Revise Rule&rdquo; next to the relevant Income Head and provide 12.36 for &ldquo;Service Tax Rate&rdquo; field.  Click &ldquo;Preview&rdquo; button and ensure the Invoice looks alright.  That&rsquo;s all.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_your_Society_does_not_collect_Service_Tax_from_Members\"><\/span><span style=\"color: #008000;\"><strong>If your Society does not collect Service Tax from Members<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Please consult with your Auditor.  Please find the Taxable Income of your Society from this link: <a href=\"https:\/\/adda.io\/blog\/2012\/06\/16\/society-service-tax-eligibility\/\">Is your Society Taxable?<\/a> [Updated on 16-June-2012]  If the Taxable Income is more than Rs.10L\/year, you may need to perform the<a target=\"_blank\" href=\"https:\/\/adda.io\/blog\/2012\/06\/14\/service-tax-registration-housing-society-apartment-owners-association\/\" rel=\"noopener\"> Service Tax registration for your Society<\/a>.&nbsp; Chances are that the collection per Flat\/Month does not exceed Rs.5000 in your case. <span style=\"text-decoration: line-through;\">But, if you have multiple flats owned by one person, you will have to collect and pay Service Tax for that Member. <\/span>But if one Owner is having many flats, the total exemption for your Society is less, and may end up having greater Taxable Income. [Updated on 16-June-2012]  Please consult with your Auditor and follow his interpretation, as appropriate.  If you are an Admin User of a Premium ADDA (have premium Subscription Agreement with ADDA), please join the conversation here: <a target=\"_blank\" href=\"http:\/\/www.linkedin.com\/groups\/ADDA-Admin-Users-4370555?home=&amp;gid=4370555&amp;trk=anet_ug_hm\" rel=\"noopener\"><strong>ADDA Admin Users<\/strong><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Disclaimer:<\/strong> The above article compiles our learning from a good number of Apartment Complexes in India. Please note that regarding Service Tax, there are various interpretations by various Auditors. It is best to follow the interpretation of your Auditor who is responsibile of your Financial Statements &amp;&nbsp;Reporting.<\/p>\n<p>Updates made in October-2013.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are performing your Society Billing on ADDA, below are the suggested changes for the Service Tax reforms of Budget 2012. If your Society already collects Service Tax from&hellip;<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[2024,2019],"tags":[244,256],"class_list":["post-2794","post","type-post","status-publish","format-standard","hentry","category-adda-community-accounting","category-adda-india-housing-society-apartment-management","tag-income-tracker","tag-service-tax"],"_links":{"self":[{"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/posts\/2794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/comments?post=2794"}],"version-history":[{"count":1,"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/posts\/2794\/revisions"}],"predecessor-version":[{"id":17107,"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/posts\/2794\/revisions\/17107"}],"wp:attachment":[{"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/media?parent=2794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/categories?post=2794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adda.io\/blog\/wp-json\/wp\/v2\/tags?post=2794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}