vocational training

[Asked by Guest]

Hi all,

I have a query regarding the service tax, it would be of great help if i get an expert advise regarding the same. Am writing on behalf of my brother, well he took admission in frankfinn institute on 06/07/2009 and paid the last installment of his fees on 24/07/2010. I would like to know whether do we need to pay the service tax either on course fee or the last installment. please communicate your views regarding the same.

Thanks in advance,

kind regards,

pooja

AI Summary

Service tax on vocational training arises on instalments as received; providers must charge tax in each instalment bill.
Service tax on vocational training fees is chargeable on amounts actually received; when fees are paid by instalments the tax arises as and when each instalment is received. The provider must charge service tax in the bill corresponding to each instalment, and aggregating untaxed instalments to levy tax only on a later payment is improper and may invite departmental action. The recipient is liable to pay service tax as charged, contingent on proper invoicing by the provider.