| Q.1 |
Whether
intensive tuition/ coaching institutes /group of individuals
for various competitive exams./ correspondence and foreign degree
courses/ spoken language course liable for Service Tax? |
| Ans. |
Commercial
coaching and training services provided by institutes that prepare
applicants for Board examinations and competitive exams, like
entrance examinations for IIT, Joint Entrance Exams./ Premedical
Tests, Civil Services Exam, etc. are chargeable to service tax.
However, services in relation to Commercial Coaching and training,
provided by :-
| a) |
Vocational Training
Institute |
| b) |
Computer Training
Institute and |
| c) |
Recreational Training
Institute; |
have been exempted from service tax w.e.f. 1st July,
2003 vide Notf.No.9/2003 Service Tax. Therefore, vocational
coaching and training services provided by typing and shorthand
institutes, TV/Vehicle repairs training institutes, tailoring
institutes, industrial training institutes, foreign language
institutes, computer training centres, hobby classes, institutes
teaching martial arts, painting, dancing etc, would not be chargeable
to Service Tax. |
| Q.2 |
Whether
service tax is leviable on postal/correspondence coaching? |
| Ans. |
Service
Tax is leviable on any coaching or training provided by an institution
on commercial basis. Therefore, the coaching provided
by postal means would also be covered under the service tax. |
| Q.3 |
Whether
individuals going to houses to impart tuition/coaching would
be chargeable to service tax? |
| Ans. |
Service
tax is on institutions/ establishments. Only those service
providers are covered under service tax who have some establishment
for providing commercial coaching or training.
Thus, individuals providing services at the premises of a service
receiver would not be covered under service tax. However,
if coaching or training center provides commercial coaching
by sending individuals to the premises of service receivers,
such services would be chargeable to service tax. |
| Q.4 |
Whether
commercial coaching provided by institute to the students of
degree exams held by universities are chargeable to service
tax? |
| Ans. |
Yes.
The commercial coaching given to the students to prepare them
to prepare for university degree exam is liable for service
tax |
|
