Training institute / exempted from service tax ??
This query is : Resolved
19 December 2012
Hello Experts,
We are the Training Institute registered as private limited company.
We are providing the training for software courses.
Do we need to pay the service tax, please clarify.
Thanks for you help!
We are the Training Institute registered as private limited company.
We are providing the training for software courses.
Do we need to pay the service tax, please clarify.
Thanks for you help!
19 December 2012
Apart from services mentioned in negative list of finance act 2012, all services are subject to servicetax..
19 December 2012
Hello Mr. Arun,
Thank you so much for your reply.
could you please let me know from where I can get the Negative List of finance act 201
thanks
Thank you so much for your reply.
could you please let me know from where I can get the Negative List of finance act 201
thanks
02 August 2025
Hello,
Thank you for your query regarding the applicability of service tax to your training institute providing software courses.
Applicability of Service Tax to Training Institutes
As per the Finance Act, 2012, services provided by commercial training or coaching centers are generally subject to service tax. However, there are specific exemptions outlined in the Negative List under Section 66D of the Finance Act, 1994, which came into effect on 1st July 2012.
TaxGuru
+4
Nishith Desai Associates
+4
TaxGuru
+4
gstpress.com
+1
Indian Kanoon
+1
According to Section 66D(l)(ii), services by way of "education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force" are excluded from service tax. This means that if your software training courses are part of a recognized curriculum leading to a qualification recognized by law, they may be exempt from service tax.
TaxGuru
+2
gstpress.com
+2
Indian Kanoon
+2
Determining Exemption Eligibility
To determine if your courses qualify for this exemption, consider the following:
Curriculum Recognition: Are your courses part of a curriculum that leads to a qualification recognized by law? For instance, if your courses are affiliated with a university or an institution that offers degrees or diplomas recognized under Indian law, they might fall under this exemption.
Certification: Do your courses culminate in a certification that is recognized by a statutory body or educational authority?
TaxGuru
+4
Indian Kanoon
+4
TaxGuru
+4
Affiliation: Is your institute affiliated with any recognized educational institution or university?
TaxGuru
+5
Indian Kanoon
+5
TaxGuru
+5
If your training programs meet these criteria, they may be exempt from service tax under the provisions mentioned above.
Action Steps
Review Course Affiliation: Ensure that your courses are part of a recognized curriculum leading to a qualification acknowledged by law.
Indian Kanoon
+2
TaxGuru
+2
gstpress.com
+2
Consult with Tax Professionals: Given the complexities involved, it is advisable to consult with a tax professional or legal advisor who can assess your specific situation and provide guidance tailored to your institute's offerings.
Documentation: Maintain proper documentation of your course affiliations, certifications, and any agreements with recognized institutions to substantiate your claim for exemption.
If you require further assistance or have more specific details about your courses, please feel free to provide additional information, and I would be glad to offer more targeted advice.
Thank you for your query regarding the applicability of service tax to your training institute providing software courses.
Applicability of Service Tax to Training Institutes
As per the Finance Act, 2012, services provided by commercial training or coaching centers are generally subject to service tax. However, there are specific exemptions outlined in the Negative List under Section 66D of the Finance Act, 1994, which came into effect on 1st July 2012.
TaxGuru
+4
Nishith Desai Associates
+4
TaxGuru
+4
gstpress.com
+1
Indian Kanoon
+1
According to Section 66D(l)(ii), services by way of "education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force" are excluded from service tax. This means that if your software training courses are part of a recognized curriculum leading to a qualification recognized by law, they may be exempt from service tax.
TaxGuru
+2
gstpress.com
+2
Indian Kanoon
+2
Determining Exemption Eligibility
To determine if your courses qualify for this exemption, consider the following:
Curriculum Recognition: Are your courses part of a curriculum that leads to a qualification recognized by law? For instance, if your courses are affiliated with a university or an institution that offers degrees or diplomas recognized under Indian law, they might fall under this exemption.
Certification: Do your courses culminate in a certification that is recognized by a statutory body or educational authority?
TaxGuru
+4
Indian Kanoon
+4
TaxGuru
+4
Affiliation: Is your institute affiliated with any recognized educational institution or university?
TaxGuru
+5
Indian Kanoon
+5
TaxGuru
+5
If your training programs meet these criteria, they may be exempt from service tax under the provisions mentioned above.
Action Steps
Review Course Affiliation: Ensure that your courses are part of a recognized curriculum leading to a qualification acknowledged by law.
Indian Kanoon
+2
TaxGuru
+2
gstpress.com
+2
Consult with Tax Professionals: Given the complexities involved, it is advisable to consult with a tax professional or legal advisor who can assess your specific situation and provide guidance tailored to your institute's offerings.
Documentation: Maintain proper documentation of your course affiliations, certifications, and any agreements with recognized institutions to substantiate your claim for exemption.
If you require further assistance or have more specific details about your courses, please feel free to provide additional information, and I would be glad to offer more targeted advice.
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