𝗖𝗘𝗦𝗧𝗔𝗧 𝗕𝗮𝗻𝗴𝗮𝗹𝗼𝗿𝗲 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗔𝗱𝘃𝗮𝗻𝗰𝗲 𝗠𝗲𝗺𝗯𝗲𝗿𝘀𝗵𝗶𝗽 𝗙𝗲𝗲𝘀 𝗮𝗻𝗱 𝗠𝘂𝘁𝘂𝗮𝗹𝗶𝘁𝘆 𝗼𝗳 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 📢 The Tribunal held: "Under the ‘Doctrine of Mutuality of Interest,’ fees collected by a society from its members are not taxable."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Karnataka Golf Association, providing club membership services. 𝗜𝘀𝘀𝘂𝗲: Are fees collected from society members subject to Service Tax under the mutuality principle?

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that, based on the Supreme Court’s Calcutta Club Association decision, the Doctrine of Mutuality applies beyond July 1, 2012. Consequently, fees collected from society members are not taxable as services. The Service Tax demand was set aside, and the appeal was allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Karnataka Golf Association vs. The Commissioner of Service Tax 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 21319 of 2016 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 19 October 2023 📜 This ruling reinforces that membership fees from society members are non-taxable under mutuality principles, upholding the members’ rights within such associations.