Payment of Service Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2010 I am a Student of Bengal Tax Counsel educare PVT LTD.They provide the Training for Tax Consultant and Accounting Practitioners.Am I liable to pay Service Tax?Plz help me.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 April 2010 Chapter No. 049

Commercial Training or Coaching Centre
(w.e.f. 1.7.2003)
What is taxable - 65(105)(zzc)
Any service provided or to be provided to any person, by a commercial training or coaching centre in relation to commercial training or coaching;
Who is the receiver of service
Any person
Who is the provider of service
A commercial training or coaching centre
Who is liable to pay service tax
A commercial training or coaching centre (service provider)
Meaning of Commercial training or coaching - 65(26)
"commercial training or coaching" means any training or coaching provided by a commercial training or coaching centre;
Meaning of Commercial Training or Coaching Centre - 65(27)
"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;
Comments
A. As per Paragraph No 6. of Circular No. 96/7/2007 dated 23/8/2007 states that :-
"6. This circular supersedes all circulars, clarifications and communications, other than Orders issued under section 37B of the Central Excise Act, 1944 (as made applicable to service tax by section 83 of the Finance Act, 1994), issued from time to time by the CBEC, DG (Service Tax) and various field formations on all technical issues including the scope and classification of taxable services, valuation of taxable services, export of services, services received from outside India, scope of exemptions and all other matters on levy of service tax. With the issue of this circular, all earlier clarifications issued on technical issues relating to service tax stand withdrawn."
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1. Services provided for training of sports like cricket, hockey, football, athletics, etc are not taxable.
2. Pre-school coaching in Play Homes, Crèche, etc. is not taxable.
3. Postal coaching or through correspondence is taxable and it will include the postal charges charged for rendering the service.
4. Study material value is not excludible otherwise than sale value of standard text book which are priced.
5. Special Coaching by institution in addition to coaching for recognised courses is not taxable if it is recognised by law.
6. Vocational training institute enable the trainee to seek employment is not taxable, like typing and shorthand institutes, industrial training institutes, foreign language institutes, hobby classes, institutes teaching martial arts, painting, dancing etc.
7. Recreational training institute provides training related to recreational activities are not taxable.
8. Taxable services provide by a commercial training or coaching centre which form an essential part of a course of any other institute recognised by law for the time being forced are exempt otherwise than the charges are paid to the commercial training or coaching centre.
9. If individual going to the house to provide services, it would not be taxable otherwise than if such individual is providing the service on the behalf of commercial institution.
10. If employer provides any free training themselves to the employees it will not be taxable, but if hire an outside commercial coaching centre it will be taxable.
11. Coaching imparted to students of standards 1 to 9 is not taxable [FAQ]
See also:
1. Circular No. 59/8/2003 dated 20/6/2003 - Clarification
2. Notification No. 10/2003 St dated 20/6/2003 - Exemption in relation to law recognized diploma or degree or educational qualification
3. Notification No. 24/2004 ST dated 10/9/2004 - Exemption Notification to vocational and recreational institutions

i.e

If their limit is cross the basic exemption limit ie. 10 lac and they are charging servict tax on bill.
Then you have to pay service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2010 Thank u very much Sir.

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