Service tax on library fee, hostel fee

[Guest]

my client runs a coaching institute. he is charging service tax on the tuition fee only. during the recent audit by excise department,it has been instructed that service tax should also be charged on library fee, hostel fee. pl. explain the correct position.

AI Summary

Coaching Institutes Must Apply Service Tax on Library and Hostel Fees Under Commercial Coaching Services Regulations A coaching institute owner was informed during an excise department audit that service tax should be applied not only to tuition fees but also to library and hostel fees. The respondent clarified that service tax must be applied to the total amount charged for services unless specific exclusions are provided under the law. Since no exclusions apply to 'commercial coaching services,' the audit's demand for service tax on library and hostel fees is justified.