Applicability of service tax

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Jyoti Malik (Querist)
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10 March 2012 I have a query regarding applicability of service tax for music & dance teaching institute run by a proprietor.Gross receipts for the year is Rs.20lacs. But some people are of the opinion that it is a commercial coaching and hence service tax is applicable.Some are of the opinion that it is recreational coaching and hence exempted from service tax.kindly help me by explaining whether service tax is applicable or not?

vinay

vinay (Expert)
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12 March 2012 Notification No 3/2010 -ST dated 27-2-10 exempts certain services provided by a commercial training or coaching center and further defines the term "recreational training institute"
as per the notification, recreational training institute means a commercial training or coaching centre which provides training or coaching relating to recreational activities such as
DANCE, SINGING,
martial arts or hobbies.

Since in your case the person is teaching music and dance the same is covered in the above definition and the same is exempted from service tax

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