are basically service –oriented
organization and being part of the civil society, work
for the poor and marginalized communities. Therefore
NGOs enjoy tax exempt status under section 11 and 12
of the Income-tax Act as their work is for the poor
and the underprivileged sections of our society.
though NGOs provide their services for a charitable
cause, they may still charge some amount for their
services with a view to recover their running costs
or to finance their operations. Therefore the Service
tax shall be leviable on any taxable service provided
by NGOs. And NGOs will be liable to collect the
service tax from the persons to whom they are rendering
the services and also deposit it with the Government.
the other hand NGOs also utilize the services of
the service providers. The service provider raises
invoices/bills in which the service provider charges
service tax. In such case the Service provider
to NGO will collect the service tax and deposit
the same with the Government.
Some of the important provisions relating thereto have been discussed