Service Tax on Study Material supplied by a Commercial Coach

CA RAMESH KUMAR AHUJA (CA, DISA) (5445 Points)

04 November 2008  

A commercial coaching centre supplies books developed by its own content developers/faculty. The cost of study material supplied is not charged seperately but the fee charged is inclusive of this cost.

Whether the cost of such study material may be deducted from the amount of fee to arrive at the taxable services and Service Tax is leviable on the net amount of Fee?