Applicability of service tax on education fees

[Guest]

Dear Sir my issue is related with service tax on education business. We want to start new business in education field. The education is realted to course in the field of clinical research. it is full time as well as part time certificate course. we are pvt ltd company. My question is related to applicability of service tax on fees. Do i hv to pay service tax on education fees ? tell me the heads which are exemted from service tax. And if i need exemption from service tax than wht should i do ? pls urgent and detail,

[Ravi Chopra]

Any eduction which is for commercial purpose shall be subject to service tax. Further, it appears that your activity is not falling in the exclusion categories of taxable service of "Commercial coaching and training service" therefore, you need to classify your service under the same category.

[Guest]

Dear sir first of all let me thank u for your prompt reply. However further going into detail if i want to charge Total 100/- Rs fees than Can i birfurcte it into Tution fees Rs 75/-( taxable components) and Rs 25/- as Matarial / stationary fees/ laptop charges /library fees/ examination fees (which is not supply of service but supply of material) ? In this case can i get exemption on Rs 25/- ? or else if i want to make affilation with some university than can i get exemtion ? tell me the in brief.

[Guest]

if your course certificates are finally awarded by recognised university, you need not collect st.

AI Summary

Service tax on commercial education may apply to fee income unless certificates are awarded by a recognized university. Commercial education services are generally subject to service tax and should be classified under Commercial coaching and training service when not within exclusion categories. Bifurcation of fees into tuition (taxable) and material/examination charges (potentially non-service) depends on the true nature of the supply. If course certificates are finally awarded by a recognized university, those courses are treated outside the service tax levy.