TaxTMI 
TaxTMI 
TaxTMI 
Whether courses like "Communication Skill" or "Professional Development" provided by commercial training or coaching center is Vocational Courses for the purpose of claiming exemption from service tax.
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....hether courses like "Communication Skill" or "Professional Development" provided by commercial training or coaching center is Vocational Courses for the purpose of claiming exemption from service tax. <br>News and Press Release<br>Dated:- 8-2-2009<br><BR>Notification no. 24/2004-ST, dated 10.09.2004 exempts services of a vocational training institute providing in relation to commercial training or....
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.... coaching services from service tax. The scope of Vocational Training Institute is defied as under: (i) "vocational training institute" means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching; Since, then it is hot debatable is....
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....sue that what type of activities are covered by the above definition of Vocational Training Institute. A careful reading of all the circular or clarification etc. issued by the Board or department from time to time, it appears that no serious attempt has been made to define the scope in clear terms to avoid unwarranted disputes causing loss of revenue and precious time in legal fighting. In the....
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.... latest Circular No. 107/01/2009 dated 28-1-2009, the board has clarified the issue as under: "The vocational training institutes are exempted from service tax vide notification no. 24/2004-ST, dated 10.09.2004 (as amended). By definition, such institutes should provide training or coaching that imparts skill to enable the trainee to seek employment or undertake self-employment, directly after s....
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....uch training or coaching. Disputes have arisen in respect of institutes that offer general course on improving communication skills, personality development, how to be effective in group discussions or personal interviews, general grooming and finishing etc. It is claimed that such training or coaching improves the job prospects of a candidate and therefore they are eligible for exemption as 'voca....
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....tional training institutes. However, a careful reading of the definition shows that the exemption is available only to such institutes that impart training to enable the trainee to seek employment or self-employment. The courses referred to above do not satisfy this condition because on their own such courses do not prepare a candidate to take up employment or self-employment directly after such t....
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....raining or coaching. They only improve the chances of success for a candidate who already has the required skill. Therefore, such institutes are not covered under the exemption." See: Circular No. 107/01/2009 dated 28-1-2009,<BR> News - Press release - PIB....