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Coaching centre have profession or business

Ramanuj (Accountant.) (834 Points)

14 March 2015

Dear All

I want to known that Tuition fee cross bussines 30 lacs. Mainly work have Tututor have here from market as quilifyed teacher, provide service to student, who student have preparation of competative as air force, NDA, SSC. SRCS, ETC, above provide service to known as Bussiness & Profession, Further Tax Audit applicable on 25 lacs Or One Crore. Please reply as soon as possible.

Above service have Service tax applicable of not

Thanks in advance!

Thanks & Regards

Ramanuj

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6 Replies

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 16 March 2015

Hello,

In my point of view it is considered as professional income it is not business income.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 16 March 2015

Yes. The commercial coaching given to the students to prepare them to prepare for university degree exam is liable for service tax.

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 16 March 2015

You income will be considered as professional income only if you are earning as a tutor. But, as you said, you hire tutor from market, then you are running an education business.

Whatever tutors are getting from you is their professional income. But whatever you are receiving from Students that is business income.

You are liable to pay service tax as gross receipts are more than INR 10 lakhs.

Tax audit is not appliable to your as your gross receipts are less than INR 1 crore.

Regards

Vineet

www.financeandtaxhub.blogspot.com

Soham (Learning ) (534 Points)
Replied 16 March 2015

Agreed with Vineet !!

Ramanuj (Accountant.) (834 Points)
Replied 17 March 2015

Dear all

Thank for sweet reply, I know that that is bussiness income. Paid to Tutor on complete Course. which type would be expenses ? this is not salary expenses becouse not relation of employee & employer, I have contact of Tutor for NDA complete Course like as other course. TDS is applicable or not. I think TDS is not applicable becouse Bussines is not cross 1 crore. please reply on urgent basis. I am right or wrong.

Thanks in advance!

Thanks & Regards

Ramanuj