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St on corporate training rendered at client-site?

K Rohit Kumar (Consultant) (35 Points)

04 December 2011

Hello,

I am partner in a registered partnership that provides personalised coaching to sales executives and service executives of a company. The training is provided on-site, i.e. at the client's site. The service revenue for FY11-12 is going to be Rs. 14 lakhs. The partnership has no "classes" or "training centres" or offices.

Is service tax leviable on my partnership?

Thanks

K. Rohit Kumar

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Prakash (Chartered Accountant) (560 Points)
Replied 04 December 2011

You are very much covered for Service Tax under Commercial Coaching or Training Services

In the following circular department has clarified the same

Circular No. 59/8/2003, 20th June, 2003

Whether individuals going to houses to impart tuition/coaching would be chargeable to service tax: It is clarified that service tax is on institutions/establishments. Therefore, only those service providers are covered under the service tax who have some establishment for providing commercial coaching or training i.e. institutional coaching or training. Thus, individuals providing services at the premises of a service receiver would not be covered under service tax.

However, if coaching or training center provides commercial coaching by sending individuals to the premises of service receivers, such services would be chargeable to tax, as in this case, the individuals are rendering services on behalf of an institution.

In your case you are providing Training on Behalf of your Firm, which has an establishment setup

So, you need to register with Service Tax Dept, once your turnover exceeds 9 Lacs

You can claim 10 lacs exemption for first year, but registration has to be done after exceeding 9 lacs

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