HEALTH CLUB AND FITNESS CENTRE

Date of Introduction: 16th August, 2002. (Notification No. 8/2002-ST dated 01.08.2002)

Definitions:

a)“health and fitness service” means service for physical well being such as, sauna and steam bath, turkish bath, solarium, reducing or slimming salons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service;
(Section 65(42) of Chapter V of Finance Act, 1994)

b)“health club and fitness centre” means any establishment, including a hotel or resort, providing health and fitness service; (Section 65(43) of Chapter V of Finance Act, 1994)

Taxable Service:

Any service provided to any person, by a health club and fitness centre in relation to health and fitness services; and the term “service provider” shall be construed accordingly.
(Section 65(90)(zw) of Chapter V of Finance Act, 1994)

Scope of the Service:

Health and fitness services are provided by clubs, fitness centres, health saloons, hotels, gymnasiums and massage centres. The services which fall under this category might be for weight reduction and slimming, physical fitness exercise, gyms, aerobics, yoga, meditation, reiki, sauna and steam bath, turkish bath, sun bath and massage for general well being.
(Board’s F.No. B11/1/2002-TRU, dated 1.8.2002)

Value of Taxable Service:

The gross amount charged by the service provider for such service rendered by him.
(Section 67 of Finance Act, 1994)

Who is responsible to pay Service Tax:

The service provider, i.e. Health club and fitness centres are responsible for payment of service tax.
 

Exemption and Exclusion:

Therapeutic massage does not come in the ambit of taxable service. Therapeutic massage basically means a massage provided by qualified professionals under medical supervision for curing diseases such as arthritis, chronic low back pain and sciatica etc. Ayurvedic massages, acupressure therapy etc. given by qualified professionals under medical supervision for curing diseases/disorders will come under the category of therapeutic massages.
 

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