In Mumbai, the daughter of my relative, who appeared for CA-CPT exam in June 2011 and even before CPT Exam Results were out, had paid Fees of Rs.40,000 + Service Tax 4,120 to a Reputed Coaching Classes for Tution for CA-IPCC, with the understanding that, if the student failed in CA-CPT exam or for any other reason, didnot start the CA-IPCC Coaching, will get refund of Fees Rs.40,000/- only and Service Tax of 4,120 will not be refundable.
She failed in CA-CPT Exam.The Coaching Classes has agreed for Refund of fees Rs.40,000/- after 3 months and not Service Tax 4120.
Query= Is it correct on the part of Coaching Classes in its stand that Service Tax 4,120 is not Refundable?
I, in my common sense, feel that since the
service of Coaching has not been taken and Fees is being refunded, then Service Tax 4,120 should also be refunded by Coaching Classes. The Coaching Classes can claim refund / reversal of Service Tax in its subsequent returns.
Experts are requested to guide me, with actual position, with reference to section/ rule / circular.
Thanks in Advance.
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Refund of service tax + fees taken by coaching classes??
yes it should be refunded because if for any reason service is not rendered in respect of payment recieved and the amount subsequently refunded service tax for that can be adjusted later
The service activity here is coaching the student. The same has taken place. So, it cannot be said that service has not been rendered and not recived. Adjustment is possible only if, service was not rendered for some reason. Therefore, the stand taken by the institute is in order.....
OFFICESELVA,
Pl. read the query properly. The student didn not start the coaching for CA-IPCC, as she did not clear the earlier CA-CPT Exam. The Coaching Classes is refundinG the Fees of CA-IPCC, but not the Service Tax of 4120.
Awaiting your opinion based on these facts.
sheena is correct in her reply that S.T too should br refunded (since no service rendered) & institute will adjust it accordingly in its return even if it has paid the collected st to the govt...
Sorry, you are correct. I did not notice the difference between CA-CPT & CA-IPCC. Provision is there in Service Tax Rules 1994 to make adjustment while paying service tax, if (only if) Service Tax amount involved also returned to the student...
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