Method of levy for coaching institute

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This query is : Resolved

paras mehta (Querist)
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25 October 2013 Hi friends, we have a chain of coaching institutes for CAT and other entrance tests.

We receive the fees from the students in installments and issue them the receipts accordingly.

Currently, we account entire fees with the receipt of very first installment and so pay the service tax on entire fees, say Rs.25000/- based on Receipt of say Rs. 5000/-.

My query is whether we should pay the service tax on the entire fees even if we have a receipt of only first installment or we should pay the service tax based on collection?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 October 2013 you can pay service tax on the installment basis. However, service tax is no more payable on collection basis.

You may refer to Point of taxation rules 2011

https://www.servicetax.gov.in/pt-of-taxtn2011.htm

paras mehta

paras mehta (Querist)
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29 October 2013 Please provide me more solid base for collection basis method, if possible.

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