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Applicability of Service tax

Amit (Chartered Accountant B.Com(H)) (453 Points)

23 February 2010

Dear friends

Please inform me whether service tax is applicable on a private company engaged in providing dance and music classes.

Please quote relevant provisions . Its urgent.

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8 Replies

Poornima (Search on.... for knowledge) (129 Points)
Replied 23 February 2010

Dear Amit,

"commercial training or coaching" means any training or coaching provided by a commercial training or coaching centre;

"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;

So as per above defination your service is covered under commercial training services covered under section 65(105)(zzc).

Refer www.servicetax.gov.in in this regard, in that go to the ACT, then search for the word commercial training you will find above defination there.

Puneet (learner) (105 Points)
Replied 23 February 2010

Dear Poornima bang/all friends

Please tell me that is there any service tax applicable on Any Cotching institute. when they teach student. And I am also interested in this Answer.

Puneet (learner) (105 Points)
Replied 23 February 2010

Dear Poornima bang/all friends

Please tell me that is there any service tax applicable on Any Cotching institute. when they teach student. And I am also interested in this Answer.

Amit (Chartered Accountant B.Com(H)) (453 Points)
Replied 23 February 2010

Dear Poornima Bang

No doubt these services are covered in commercial training or coaching but there is a notification(24/2004) issued by the Central gov which exempt services provided by recreational institute-.

And for the purpose of that notification Recreational institute means-a commercial coaching center or institute which provides training or coaching relating to recreational activities such as Dance, singing, martial arts or hobies.

Now please suggest me whether the private company will fall under this exemption notification.

Poornima (Search on.... for knowledge) (129 Points)
Replied 24 February 2010

Dear Puneet,

Refer to the defination of commercial training & coaching centre quoted above it says includes coaching or tutorial classes .As per my opinion it is liable to Service Tax, take other members opinion also.

Poornima (Search on.... for knowledge) (129 Points)
Replied 24 February 2010

Dear Amit,

Notification No. 24/2004 as amended by 19/2005 dtd. 7/6/2005 & Circular No. 107/01/2009 -ST dated 28/01/2009.

And currently it is Vocational and recreational training institutes exempt from 1.7.2003 to 30/06/2004 and from 10/09/2004 onwards. In case of vocational training, the exemption is available only to such institutes that impart training to enable the trainee to seek employment or self-employment

So you have to ensure that your company's Trainee are learning dance for self employement.

1 Like

PRATIK P MEHTA (Final Student,articles) (125 Points)
Replied 26 February 2010

i agree with miss poornima ....

DEEPAK GUPTA (CA in practice) (22 Points)
Replied 10 November 2011

I disagree with Poornima. According to me exemption to dancing/ singing schools is still available under notification no.24/2004-ST, dated 10-09-2004, as amended by, notification no.3/2010, dated 27-2-2010