Service tax on training and coaching services

Hi,

We provide training and coaching services to students. As part of the course curriculum, we are providing course material on the subject and we collect the cost of  course material and training fee in the bill. We are charging service tax only on the portion of the training fee. 

For Eg: 

Cost of study material           Rs.3000.00

Training fee                             Rs.1000.00

Service tax @ 12.36% on      Rs   123.60

Rs.1000/-                               ------------------

Total billed value                  Rs.4123.60

                                                 =========

My query -

Is the above billing correct ?

Whether the above nature of services comes under works contract (since both material and service is involved), if so , what is the percentage of the value on which service tax need to be charged.?

Please clarify?

Thanks

 

 

Replies (3)

why don't you provide for vat for books sold?

Dear Sir, It will not fall under 'Works Contract' because the activity is not in the nature of construction, erection, commissioning, repair, renovation, etc. In my view, service tax should be collected on the entire value including study material(i.e. on Rs. 4,000 in above example) as cost of study material is neither in the negative list, nor any exemption is applicable.

It is commercial training and coaching service.you should charge vat on sale of material and s.tax on only service portion.

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