Service Tax for Commercial Training & Couching.

[Jyoti Sahoo]

Dear All,

We are providing commercial training & couching certifiaction course recognised by Central Government to students,so please advise me whether this will attract service tax or not, if no than please tel me the exemption notification no.

Immediate answer shall appreciate.

Thanks in advance.

Regards,

CMA Shanmukha.

[Guest]

Notification No.33/2011 – Service Tax

G.S.R. (E) – In exercise of the power conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government on being satisfied that it is necessary in the public interest so to do, hereby exempt,-

(i) any preschool coaching and training;

(ii) any coaching or training leading to grant of a certificate or diploma or degree or any  educational qualification which is recognised by any law for the time being in force;

when provided by any commercial coaching or training centre from the whole of the service tax leviable thereon under section 66 of the Finance Act, 1994.

2.         This notification shall come into force on the 1^st day of May, 2011.

(Sanjeev Kumar Singh)

Under Secretary to the Government of India

 Hope this shall meet your requirement.

[Jyoti Sahoo]

Dear Kapoor,

 

Thank you so much for  your valuable help to me.

 

After saw your profile,i would like to get one more clarification from you on transfer pricing.

What is Transfer Pricing tournover limit between Associated Enterprises during financial year for Transfer Pricing Audit and getting certficate from financial Auditor in form 3CEB and Transfer Pricing Return Filing.....?

 

Once more thank you so much.

Am expecting valuable reply from you.

 

Regards,

CMA Shanmukha.

[JAMES PG]

Sec 66 is no more in force after 1.07.12 and hence the Notification too. Please refer to the Negative list and Mega exemption Notification in this regard. Para 4.12.1 of the Education Guide is reproduced below for your guidance:

4.12.1 What is the meaning of 'education as a part of curriculum for obtaining a qualification recognized by law'?

It means that only such educational services are in the negative list as are related to delivery of education as 'a part' of the curriculum that has been prescribed for obtaining a qualification prescribed by law. It is important to understand that to be in the negative list the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification.

[Jyoti Sahoo]

Dear Mr.James,

 

Thank you so much for your needful information.

 

Regards,

CMA Shanmukha.

[NEERAJ KUMAR, RANCHI]

your work will definitely attract service tax no exemption is available to coaching provided by the institution who are not providing degree/diploma.

[Jyoti Sahoo]

Dear Mr. Neeraj,

 

We are providing couching & training on Power Plant for generation of Power to the mechanical & Electrical Engineers ( B-Tech students),after completation of course we giving certificate to the students.

And also we are affiliated from "Central Electricity Authority" (CEA) for the couching & training.

So, is it covered under degree course....?.

Am expecting some more clarification on my service tax laibility.

 

Thanks in advance.

 

Regards,

 

CMA Shanmukha.

AI Summary

Service tax on commercial coaching may apply when courses do not form part of a legally recognised qualification. Commercial coaching leading to a certificate, diploma, degree or other legally recognised qualification was exempted by Notification No.33/2011 when provided by training centres; however, after statutory changes and adoption of a Negative List approach post mid 2012, only education delivered as part of a curriculum for a recognised qualification is excluded from tax, and private coaching not forming part of such curriculum remains taxable.