Service tax applicability - E-AMB

[Guest]

We are an ITES Pvt. Ltd. Co. providing online solutions. We are providing online solutions for e-AMB. Students pays fees to university and university in turn shares revenue in the ratio of 20:80. So the share we receive from university is subject to service tax?

[Madhukar N Hiregange]

What exactly is the service you provide. If it is a servcie in reagrd to a subject and you provide that there may not be any liability.

AI Summary

Service tax liability on revenue share depends on whether the online education service is characterised as a taxable service to the university. Taxability of the university's revenue share paid to the ITES operator hinges on whether the operator is supplying a taxable service to the university or merely delivering course-related services to students; if the service is 'in regard to a subject' provided to students, service tax may not apply, but if the payment is consideration for an independent service to the university, liability could arise, so precise factual characterisation is required.