we are an educational institution. We pay honorarium on per day basis for academic advisors. I would like to know, if such payment is applicable to service tax - if so how to treat it if such advisor is an individual?
srividya (asst mgr fin & a/cs) (114 Points)
12 October 2013we are an educational institution. We pay honorarium on per day basis for academic advisors. I would like to know, if such payment is applicable to service tax - if so how to treat it if such advisor is an individual?
Gautam Joshi
(Partner)
(361 Points)
Replied 16 October 2013
Dear Srividya,
From July 2012, all activities are services if done for a consideration. If academic advisors are not employees of your institution then service tax would be payable by advisors as a service provider. It is the responsibility of advisors to charge ST to institution and they can receive benefit of Rs. 10 lakh as threshold exemption from service tax.
Best Wishes.
Arun Kumar Singh
(GST Advocate)
(15188 Points)
Replied 17 October 2013
No need to pay service tax in regards to services provided to educational institution under mega exemption Notification No. 25/2012-ST.
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