tax on following services

[ajay singh]

A Company is carrying vocational training courses like Fitter , Quality Testing, Mobile repairing, Beauty parlor etc. It has two mode of receiving consideration Tuition fee from students or grant from Govt. to be recd based on no. of students doing particular course. Govt grant is recd under Govt Schemes after completion of course. Whether above two nature of receipts are exempt from Service Tax and if yes then under what condition?

AI Summary

Vocational Training Fees Subject to 10.3% Service Tax; Government Grants Exempt Under Notification No. 24/2004-ST A company offering vocational training courses such as Fitter, Quality Testing, and Beauty Parlor receives payments through student tuition fees and government grants. The query seeks clarification on whether these receipts are exempt from Service Tax. The response indicates that the services are not exempt under Notification No. 24/2004-ST, as the institute is not affiliated with the National Council for Vocational Training. Tuition fees are subject to a 10.3% Service Tax, while government grants are not liable to Service Tax, as they are considered general donations for charitable purposes.