Service tax applicability on Skill Development centre

[Ganeshan Kalyani]

Dear Sir,

I came across an invoice which provides 'Skill development' courses to the candidate. The bill raised does not have service tax element. Kindly provide any notification number or any other relevant reference supporting the scenario where service tax is not charged by the service provider.

regards,

ganeshan

[Guest]

Education as a part of Approved Vocational Courses is covered by Negative List under section 66D (l). Apart, skill development course provided by National Skill Development Corporation and their training partners etc. is included in entry No. 9A of the Mega Exemption Notification No. 25/2012-ST as amended by Notification No. 13/2013-ST dated 10.9.2013

[Madhukar N Hiregange]

Most vocational course unless approved as said by Ashish would be taxable. There is substantial non compliance due to changing laws.

AI Summary

Education as approved vocational courses excluded from service tax, while non approved vocational training remains taxable under current law. Education provided as Approved Vocational Courses is excluded from service tax under the negative list, and skill development training delivered by the National Skill Development Corporation and its training partners is covered by the mega exemption notification; courses not approved or not covered by the exemption remain taxable, creating substantial non compliance.