TaxTMI 
TaxTMI 
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?
tax on following services
29 Sep 2011 
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Service tax on vocational training: tuition fees are taxable while general government grants are treated as non-taxable.
Tuition fees for vocational training are taxable because the institute lacks the affiliation required for exemption and must be included in valuation; government grants received as general donations or grant-in-aid not earmarked for specific trainees or activities are not taxable under the administrative guidance. (AI Summary)
Tuition fees for vocational training are taxable because the institute lacks the affiliation required for exemption and must be included in valuation; government grants received as general donations or grant-in-aid not earmarked for specific trainees or activities are not taxable under the administrative guidance. (AI Summary)