Taxable amount

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 assesee has education institute, assesee has agreement with university ( smu, symboisis etc) that assessee will get 50% of gross fees charged to student .

suppose assesse charged rs 20000 from student , and pays rs 10000 out of 20000 to university as per agrement , then question arises whether assesse charge service tax on Rs 20000 on gross or Rs 10000 which is his actual profit?

U S Sharma

U S Sharma (Expert)
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11 August 2011 if the cources offered are recognized by such universities and at the end of course the student get certification from "recognized university" then fees so collected is exempted.

in absence of above, gross collection is subject to service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 sir pls tell me which section exempted service tax on recognised university course with certificate , and the certified course is not directly provided by recognised university . it is through private institute who charge 50% ie 10000 rs

U S Sharma

U S Sharma (Expert)
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12 August 2011 As per National Policy on Education, 1986, a scheme of autonomous colleges was promoted. In the autonomous colleges, whereas the degree continues to be awarded by the university, the name of college is also included. These colleges develop and submit new courses of study for approval by the university. These autonomous colleges are fully responsible for the conduct of examination.

As all these institutions or establishment are either created or recognized in terms of the power conferred by statutes, they would fall in the category of institutes/ establishments which issues diploma or certificate recognized by the law for the time being in force. As regards issuance of degree, section 22(1) of the said Act, provides for right of conferring or granting degrees only by a ‘university’ (as defined above) or a ‘deemed university’ (as defined above).

https://www.servicetax.gov.in/circular/st-circular09/st-circ-107-2k9.htm

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