ST on Voluntary Services?

Please reply

If the service is voluntary, it means there is no money consideration involved. So on what amount will you charge service tax, even if the that particular trainning service is taxable???

Mr. Bashista u r rit in dis regard.

But, wat if an NGO is providing training to several children and collecting and collecting a nominal fee lets say Rs.100 though their expenditure is Rs.1,000. Primafacie it appears that ST is leviable. 

Actually, list of services on which ST is leviable includes COMMERCIAL Training. I want to know wat is the meaning of commercial here.

Please give ur valuable thoughts on this.

Dear Raj

If you see the commercial training and coaching services heading i.e. 49 you will see that the NGO's are clearly exempted under the exempted/non-covered catagories.

Sir I didn't find ur reference I only find

This is an extract of Section 65 of Service Tax governed by Chapter V of the Finance Act, 1994.

65.  Definitions. -

In this Chapter, unless the context otherwise requires, --

Sir plz clear it.

Dear Raj,

Please go through the Service tax tariff. This service is under chapter heading 49 and the list of exempted catagories are there.

The understanding of "commercial" as per the Tribunals in the past was that there shouldb e profit motive. Now thta aspect has been sought tobe retrspectively changed.

In your case however since the activity itslef is not commercial ( making a loss in the transaction itslef) the same may not be covered under commercial coaching.