TaxTMI 
TaxTMI 
service tax on free training to teachers - selling of educational material
12 Apr 2010 
4 Replies 
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Service tax on free training: free teacher training lacks consideration and is not taxable unless bundled with a taxable supply.
Service tax liability for free teacher training hinges on consideration, provider exemption status, and transaction characterisation: truly gratuitous training lacks consideration and is ordinarily non-taxable; if training is bundled with the sale of materials or provided by a non-exempt provider it may be taxable; Notification 12/2003 allows deduction of material cost where separately identifiable. (AI Summary)
Service tax liability for free teacher training hinges on consideration, provider exemption status, and transaction characterisation: truly gratuitous training lacks consideration and is ordinarily non-taxable; if training is bundled with the sale of materials or provided by a non-exempt provider it may be taxable; Notification 12/2003 allows deduction of material cost where separately identifiable. (AI Summary)
Is service tax chargeable on free training to teachers of a school ( for how to use educational material) while selling Educational material ( books and CDs) to a school for students by a company ??