Applicability of service tax

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Rex Uthup (Querist)
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12 October 2011 Our Client is an institute which is a non profit making organization incorporated under section 26 of Indian Companies Act 1913 later it was incorporated u/s 25 of Companies Act, 1956 however it is not constituted under an Act of Parliament / State Act / Recognised by university.
1. Is the institute liable to service tax even though it is a non profit making organization?
2. If it is liable to service tax will be it be liable under: -
a. Club Or Associations service u/s 65 (105) (zzzc) as institute has 3,48,833 members which gives them subscription fees annually. Or;
b. Commercial Training or Coaching services u/s 65(105) (zzc) as it under takes in house classes and classes in rented premises on various topics in the interest of its members. Also the main activity of institute is to conduct various types of exams in field of Finance industry.
The break up of its gross income is as follows: -
i. Subscription 60.98 lacs
ii. Exam Fees 2892.39 lacs
iii. Educational Fees 14.60 lacs
iv. Tutorial / Class fess 181.40 lacs
v. Royalty on Publication 72.01 lacs
On which of the above amounts service tax will be applicable???

Jitender

Jitender (Expert)
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12 October 2011 1. yes it is liable to service tax irrespective of its legal status in the companies act
2. to answer ur second query, can u plz elaborate the activities of the institute.

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