08 December 2010
Service tax on Coaching Centres is applicable on commercial centres "established for providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force."
Your query does not make clear the status of the professor - is he a visiting faculty paid an honorarium based on the number of classes taken - is he a paid employee of the coaching centre - or is he the owner / proprietor / partner / director of the coaching centre?
In the first two cases, the professor is not liable for service tax, since he is in no way providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes; but if he runs the coaching centre as proprietor / partner / director he would be treated as running a commercial coaching centre "for providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force;" and be liable for payment of service tax on his receipts, subject to the basic exemption of Rs.10,00,000/-.
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