Commercial training or coaching centre

This query is : Resolved

santosh kumar huded (Querist)
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25 August 2011 sir, he is receiving the amount depending on number of students he trains in his center, only the amount received per trained student is fixed.
the govt.corp.,which collects amount from the govt agency per student trained,it includes service tax and that amount is remitted by the govt.corpn. to service tax dept.
the franchise only receives amount agreed amount per student from the govt.corpn. and the govt.dept. in its agreement has provided that taxes as applicable will be paid extra.
in this case the training centre has not collected service tax, my understanding is that commercial training imparted by the training centre is not liable for service kindly enlighten. thank you sir

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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25 August 2011 service tax depends on place, in your case Govt. charging service tax and paid you a fixed fees so there is no service liability.

santosh kumar huded

santosh kumar huded (Querist)
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25 August 2011 kindly the explanation be in detail.
its a govt of karnataka enterprise and its franchises are individual commercial computer training centres, the enterprise collects amount and charges service tax from the govt institution, and the franchise only receives only the amount per students as per agreement, the agreement also provides taxes applicable will be paid extra. kindly resolve thank you

U S Sharma

U S Sharma (Expert)
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28 August 2011 ST is applicable, as the education provided by the centre is not a part of carriculam to students, so the amount received by the institute is liable to service tax.

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