Tax implication on providing education by tablets

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abhigna (Querist)

08 March 2013 Hi
My institute has been providing study material in the form of books till now and want to shift to tablets.Can you please tell me what will be the tax implications and the best tax structure for the above situation.

Dayal

Dayal (Expert)

08 March 2013 This would be deemed sales under vat ( sale of tablets) check threshold limit in your state and find out turnover limits for applicability of vat as a dealer dealing in IT products.

Printd Books are exempt hence no vat

abhigna

abhigna (Querist)

11 March 2013 Thanks for the reply Mr.DAYAL.We will incurr VAT for the tablets, but can we avail service tax exemption via notification no.12/03 on the above as we have already paid VAT?

Dayal

Dayal (Expert)

11 March 2013 You need to refer to the service tax educational guied issued by CBEC, refer page 38 (4.12) and page 39 in continuation.

If you are providing bundeld services and not merely selling tablets, then vat shall not be applicable as it is not the primary business to sell the tablets.

Your primary business is coaching by means of providing media tools to impart training.

You may accordingly review the applicability.

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