supply of testing material - Education

[Srivatsan Krishnamachari]

Dear All,

Kindly let me know this below transaction will attract service tax or not, if yes, against notification/circular etc.

We are providing Printing material to individual students to test their ability, this will be like work book, Based on the marks score, we will be giving material to higher level for further testing. These transactions are taking place presently from 1st standard to 5th standard students only. Students will be from different places not from a particular school. There is no training and coaching is involved, this transactions is near to the sale of work books Do i need to pay service tax on this transaction?

Please replay - Thanks for your support.

BR/Srinivas

[Mahir S]

Sir,

Testing student ability etc. itself is nothing but providing training and coaching to students , which shall indirectly help them to perform better in their studies..

Therefore , it appears service tax is applicable on such transaction,

[Ganeshan Kalyani]

The supply of paper/work is connected with the testing task hence vat cannot be taxed on paper/work book separately.

[YAGAY andSUN]

There is no tax i.e. Excise/Service Tax/VAT on exercise books.

AI Summary

Service tax on educational testing materials may apply where testing amounts to training, despite views excluding tax on exercise books. Whether supplying printed testing workbooks to individual students is a taxable service depends on whether testing constitutes training and coaching. One view treats testing as training and hence service-taxable; another treats the paper/workbook as connected to the service so VAT should not be charged separately; a further view asserts exercise books are not subject to Excise, Service Tax or VAT.