Is service tax registration required for providing one time large service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2015 A client is running a foreign language coaching center. He is not registered for service tax since his his annual turnover does not increase Rs. 10 lakh. He is planning to take his students on a foreign tour. For this purpose, he is collecting Rs 20 lakh from his students. The total expenses of the trip is estimated to be Rs. 16 lakh

From income tax angle I done see any problem as he can pay tax on this profit of 4 lakh

What is the service tax implication to this. Will he be required to take a service tax registration? If yes, how much service tax will he be required to pay?

Prabhat Kumar

Prabhat Kumar (Expert)
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14 October 2015 your client will cross the threshold limit of Rs. 10 lacks,registration is required and service tax will be payable on the gross receipt.

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2015 But Prabhat. Will not entry 8 of mega exemption notification apply.

"Services by way of training or coaching in recreational activities relating to arts, culture or sports"

Will foreign language class not be includable as it is related to culture?