Service tax

"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;

(Section 65(27) of the Finance Act, 1994)

“Taxable Service” means any service provided or to be provided to any person,   by a commercial training or coaching centre in relation to commercial training or coaching;

(Section 65 (105) (zzc) of the Finance Act, 1994)

Rate of Service Tax

As per the above provisions, it is said that Taxable service provided to any person includes any overseas franchisee agents. Therefore, you will be liable to service tax at the rate of 10.30%.

Regards,

Jinay Savla

I had a query regaring service tax, which was solved by Jinay. However, i have come to know thru other CA's that service tax is not applicable for my above query. Would appreciate if this query can solved.

You did not mention the exact type of service offered. If you are streaming commercial training lectures and letting the other viewers watch and interact with your professors at the same time then you will be liable to service tax.

But if you are only recording your lectures and keeping them on an internet library or any such space then it doesn't become a service, it becomes a Product. In such a case, it amounts to VAT and Service Tax is ot applicable.

However, I'm not very sure about VAT in the above case, if it does fall into the category as such but yes, Service Tax will not be applicable.

I hope, this has sufficed the purpose.

Regards,

Jinay Savla

is the service provided overseas? if this is the case then according to me it would be export of services outside india not liable to service tax in india.