have got a service tax query:-
Our Educational Institute provides satellite courses in collaboration with a technical partner which provides all types technical services to conduct the satellite courses. We charge the fees from students and also charge service tax from students (earlier : Under the head Commercial Coaching and now under the head Other than Negative list) and we have got an agreement with our technical partner that we will give them the 49% sharing out of the fees collected excluding service tax . Before July'12 they never raised a taxable invoice for Fee Sharing but recently they have raised two invoices both Dated after July'12 by charging service tax under the head commercial coaching and training.
Now My Question is :-
1. Since they are our technical partner and they are equally providing services to students is the invoice raised by them upon us including the value of service tax is correct?
2. Is our institute liable to pay service tax on the above fee sharing? since our institute is just collecting the fees amount and passing on the fees share to the technical partner as per agreement is the same covers under the definition of service? It should be noted that we have already collected and paid service tax on the above fees amount?
3. Isn't the same is double taxation?
CAclubindia
