Services by an entity registered under section 12AA of the Income tax Act, 1961 by way of charitable activities under Mega exemption notification

Services by an entity registered under section 12AA of the Income tax Act, 1961 by way of charitable activities under Mega exemption notification :

In order to claim exemption under this head, following two conditions must be satisfied: –

(i) The entity is registered with income tax authorities under section 12AA of the Income tax Act, 1961, and

(ii) The entity carries out one or more of the specified charitable activities.

It implies that any service other than by way of charitable activities to any other person for consideration (not covered in negative list) provided by an entity registered under section 12AA of the Income tax Act, 1961 is chargeable to service tax.

Charitable activities means activities relating to –

(i) public health by way of –

(a) care or counseling of

(i) terminally ill persons or persons with severe physical or mental disability,

(ii) persons afflicted with HIV or AIDS, or

(iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(b) public awareness of preventive health, family planning or prevention of HIV infection;

(ii) advancement of religion or spirituality;

(iii) advancement of educational programmes or skill development relating to, –

(a) abandoned, orphaned or homeless children;

(b) physically or mentally abused and traumatized persons;

(d) persons over the age of 65 years residing in a rural area

(iv) preservation of environment including watershed, forests and wildlife.

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