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?
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?
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.
No need to pay service tax in regards to services provided to educational institution under mega exemption Notification No. 25/2012-ST.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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