Service tax on fee collected by a dance & music classes

This query is : Resolved

Pradeep.B (Querist)
Follow

18 March 2011 Dear Friends,
can anybody guide me whether service tax is applicable to a dance n music teaching institute run by an individual/proprietor? Gross fee collection exceeds 10Lacs.Kindly help me its urgent

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
Follow

19 March 2011 Recreation coaching is exempted.

Message likes : 1 times

Pradeep.B

Pradeep.B (Querist)
Follow

29 June 2011 I had asked 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?

Message likes : 1 times

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

24 July 2025 Regarding **service tax on fees collected by dance & music classes** run by an individual/proprietor:

---

### Key points:

* Under the **Service Tax regime before GST**, the **educational and training services** are covered under specific exemption notifications.
* The relevant exemption applies to **recreational coaching or training** services.
* **Dance and music classes** are generally considered as **recreational coaching/training**.
* According to Notification No. 25/2012-ST dated 20 June 2012, services by an educational institution to its students, faculty, and staff are exempt, and recreational coaching falls under this exemption.
* Further, Notification No. 30/2012-ST dated 20 June 2012 exempts **services by way of coaching or training in recreational activities** like dance, music, art, etc.

---

### What does this mean for your institute?

* If your **dance and music classes are provided as coaching or training in recreational activities**, service tax **will NOT be applicable** even if gross receipts exceed Rs. 10 lakhs.
* The classification as "recreational coaching" is important — it is **not treated as commercial coaching** (like professional or vocational coaching).
* Thus, you are exempt from service tax on such fees collected.

---

### Summary:

| Nature of Classes | Service Tax Applicability |
| -------------------------------------- | ---------------------------------------------------- |
| Dance & music as recreational coaching | **Exempt from Service Tax** |
| Professional/vocational coaching | Service tax applicable if turnover exceeds threshold |

---

### Reference Case/Notification:

* **Notification No. 30/2012-ST** dated 20.06.2012 (Entry 7 of the exemption list)
* Circulars clarifying recreational coaching exemption

---

**If you want, I can provide the exact notification texts or help you draft a clarification letter for your records.** Would that be useful?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now