Commercial Coaching Center and Service tax implications

This query is : Resolved

CA. Ravi Shankar Dubey (Querist)
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12 February 2010 Dear All,

Kindly provide all the implication of service tax applicable for Commercial coaching center. Further whether ST would be applicable on other charges like Examinations, misc development, functions and celebrations, seminar, lab class, maintenance, certification etc.

Thanks in advance.

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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13 February 2010 Section 65 (105)(zzc) defines the "taxable service" means any service provided or to be provided to any person, by a commercial training or coaching centre in relation to commercial training or coaching;

Further, section 65 (27) defines the tern "commercial training or coaching centre" means any institute or establishment 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;

Hence. Commercial training or coaching centres are liable to service tax subject top fulfillment of above definition.

However, the exemption has been granted to â€œVocational / Recreational Training Institutesâ€ vide notification no. 19/2005-ST dated 7-06-2005.

If the commercial training or coaching centre satisfies the above mentioned definition it will be liable to service tax on fees for Examinations, misc development, functions and celebrations, seminar, lab class, maintenance, certification etc

Regards

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