07 March 2013
If a CA provided coaching services to students through coaching centre there are two contracts: 1- Between coaching centre and students 2- Between CA & Coaching Centre Here, Commercial coaching centre will be liable to pay service tax for providing coaching to the students. . . But, Will CA be liable to pay Service Tax for rendering service to the Coaching Centre. . ? If yes, under what category of service ?
07 March 2013
The education as a part of the curriculum for obtaining a qualification recognised by any law for the time being in force has been set out in the negative list. The basic question to be answered is whether the coaching institutes are providing education even though at times they are only exam passing shops. Even then what they teach is part of the syllabus. In my view the exemption is available to the coaching institutes. However the coaching classes may not take the risk as presently they are collecting and paying. The individuals who provide the coaching/ education would also be considered similarly and may not be liable.
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