Is Service Tax Liable on Following Heads

[Paresh Virdikar]

Hello,

We are Registered Trust and we are tied up with YCMOU for Earn and learn Scheme. We deploy our student in various organization. The Organization Pays a monthly Stipend to us as agreed which is in turn paid to the Students, the other charges taken by us is (Educational charges which is Paid to University, Administrative charges and Indirect Cost which is Insurance, Canteen,Shoes, Apron).

My question is Service Tax Applicable for above thing and if yes then on what amount should we deduct the Service Tax and how much percent.

Sr.no	Particulars	Amount
1	Reimbursement of Stipend	7000
2	Educational Charges	1200
3	Administrative cost	1200
4	Indirect Cost	350
		9750

As per my Knowledge the ST should be on Administrative charges, if ST is not applicable on the other heads then do we have any notification on this.

Regards,

Paresh Virdikar

AI Summary

Service tax applies to educational trust's stipends and costs; no exemptions for charitable status. Reverse charge applies. A registered trust partnered with an educational institution queried about the applicability of service tax on stipends, educational charges, administrative costs, and indirect costs related to a student employment scheme. A response clarified that no exemptions exist for trusts or charitable organizations from service tax. The service tax applies to the gross amount received for services, including reimbursable expenses, regardless of the trust's profit status. The trust's activities, involving manpower supply, fall under the reverse charge mechanism, requiring the service recipient to pay the tax. The discussion also sought further expert opinions on the matter.