TaxTMI 
TaxTMI 
Sale of study material by coaching centre , vat is paid . Now service tax audit team asking for service tax .Whether service tax applicable when vat already paid?
Sale of study material by coaching centre
09 May 2014 
3 Replies 
14128 Views Asked by
Exemption for sale of goods during services may apply when sale is separately invoiced and evidenced, limiting service tax.
Exclusion from service tax for goods sold during provision of services requires that the sale be real, VAT paid on actual basis, and the sale value be evidenced and shown separately in the invoice. The dominant intention test treats materials incidental to imparting education as part of the taxable service, while the statutory exclusion has been applied narrowly for coaching institutes to priced standard textbooks; other study material supplied as part of the service remains liable unless separately invoiced and quantified. (AI Summary)
Exclusion from service tax for goods sold during provision of services requires that the sale be real, VAT paid on actual basis, and the sale value be evidenced and shown separately in the invoice. The dominant intention test treats materials incidental to imparting education as part of the taxable service, while the statutory exclusion has been applied narrowly for coaching institutes to priced standard textbooks; other study material supplied as part of the service remains liable unless separately invoiced and quantified. (AI Summary)