Franchisee on Service Tax

Dear Sendhil, Franchise is providing service of coaching and education training to Kids. Pls check that this service is covered commercial training & coaching centre. Then franchise is liable to pay service tax on this service. franchisor is also liable to pay service tax on franchise service. Pls circuler 59/8/2003 dated june 20, 2003. franchise service is taxable under section 65(105)(zze)

Service tax is payable on franchise service. However,you have to study service tax liability of education training to kids. Then how you propose to organise business etc. It is difficult to give general answer to your queries unless various aspects are studied

Educational Institutions/Hospitals like services were exempted from under Service Tax perview. Pls, review the status of Institution, if it is commercial coaching center, then you can liable to pay service tax. Its an educational institution there is no service tax. B.V.K.Nageswara Rao, Ph: 099891 57666, Email: nageswararao.bommakanti @ ril.com

Sir, Is there any specific provision relating to educational institutions which comes within the perview of service tax? is there any criteria for differenciating between education institution and commercial educational institutes?