Whether Service tax is levied on online 'English Learning' (through its web site) 2 students 4 a fee

[Sanjeev Sharma]

A company wishes to engage in online ( through its web site) imparting of 'English Learning' to students for a fee. Is service tax applicable ? Is there any exemption being it is an educational activity ??

[Surender Gupta]

No, English Learning courses are not eligible for exemption under service tax within the category of vocational training. Now, after notification dated 27-2-2010 and 29-4-2010, only vocational training for "designated trade" and 'Modular Employment Skill courses" are eligible for exemption a vocational training.

[Sanjeev Sharma]

It means that it will be taxable under " coaching" services.

AI Summary

Service tax applicability: online English instruction treated as taxable coaching, not exempt vocational training. Online English learning provided for a fee does not qualify for the vocational training exemption; notifications limit exemptions to designated trade and Modular Employment Skill courses, so web based English instruction is taxable as coaching services.