- Now, about 8,500 members of the Sports Cclub are entitled to get service tax refund to the tune of Rs 10 crores: Rajesh Brahmbhatt
- There are 2,511 members who have paid service tax on the admission fee and are entitled to a refund amounting to approximately Rs 5.47 crore. So far, 254 members have been paid Rs 81.83 lakh as refund: Chintan Choksi, honorary secretary of the Sports Club
NE SPORTS BUREAU
AHMEDABAD, JUNE 1
Sports Club of Gujarat Members’ Protection Panel on Thursday sought refund of Service Tax levied from them, and issued ultimatum to the management to pay up the same without any further delay.
Speaking with the media, Rajesh Brahmbhatt, one of the organizers of Sports Club of Gujarat Members’ Protection Panel, said, “Being a member of the Sports Club of Gujarat Ltd I have made several representations to the management of the club to make refund of service tax as per the orders of the Honourable Supreme Court. Despite this, the management is acting arrogantly and not totally complied with the Apex Court orders .Between 2005 and July 2017, 2,511 members had paid service tax running into Rs 5.47 crores on entry fees and are eligible for refund. However, among these, till May 20, 2024, only 243 members have received Rs. 75.62 lakh as refund. The management is not clarifying when will the service tax refund be paid to the remaining members. Now, about 8,500 members of the Sports Cclub are entitled to get service tax refund to the tune of Rs 10 crores. We hereby give an ultimatum to the management to pay up the service tax refund or face the music.”
The Supreme Court (SC), in a landmark verdict in State of West Bengal Vs. Calcutta Club Limited (2017) 5, SCC 356, it was held that the club and its members are not separate entities and therefore the services provided by the club to its members are not covered by the provision of service tax, stated that incorporated clubs are not liable to levy service tax. As a result, the Sports Club must return the service tax collected from members over 14 years, starting fro m 2005.
“The Sports Club is asking the members to furnish KYC and a written undertaking that there will be no further claims for making the service tax refunds. This is unwarranted ane legally untenable,” alleged Brahmbhatt.
Refuting the allegations, Chintan Choksi, honorary secretary of the Sports Club, said, “We . have set aside the service tax refund amount in the balance sheet, and provision for the same was made. The decision for the service tax refund was taken at the Annual General Meeting on September 6, 2022. The resolution has also been filed with the Registrar of Companies (ROC) as per the Companies Act. There are 2,511 members who have paid service tax on the admission fee and are entitled to a refund amounting to approximately Rs 5.47 crore. So far, 254 members have been paid Rs 81.83 lakh as refund.”
