Taxability of service tax

[Brijesh Verma]

My query is regarding Noti.No.24/2004-ST issued in order to exempt Vocational and Recreational Training institues. In that notification a Proviso has been added w.e.f. 16.06.2005 to exclude Computer Training Institute from the exemption. My query is that suppose Mr. X provides Computer hardware/software training, Mobile repairing training and TV repairing training all under one roof, whether tax would be leviable on all the services. The reason for my query is that the phrase used in the proviso is 'Provided that nothing contained in this notification shall apply to the taxable services provided in relation to commercial training or coaching by a computer training institute.'; This gives a hint that all services provided by a computer training intitute would be taxable....Kindly clarify with rule, case laws if possible....

[Surender Gupta]

Yes, you have rightly pointed out the difficulty because of proviso the the notification no. 24/2004. If your institute is considered as computer training institute, you would not be allowed to claim exemption. On the other side if the center is considered as other than computer training institute, you would be allowed to claim exemption. It is therefore, you may opt for two separate identities for comply with the requirement of the notification and to avail the exemption for the cause mentioned in the notification.

[Guest]

You may constitute two different premises / offices to provide different services. Moreover, taking separate registration for both the premises would be an added advantage.

AI Summary

Taxability of computer training services: classification as a computer training institute renders its services taxable unless distinct entities are maintained. Classification of a centre as a computer training institute triggers the notification's proviso and disallows the exemption, so a single centre offering computer training alongside other trainings risks having all its services treated as taxable; separating activities into distinct premises and registrations is advised to preserve exemption for non-computer training services.