Our Centre provide animation coaching to students.
Students paid fees instalment basis For Example student paid Rs. 5000 per month Some times student not paid instalment Please guide me in respect of Calculation of Service Tax Instalment due basis or instalment receipt basis
25 March 2016
Service Tax is payable on issue of the invoice or receipt of consideration, whichever is earlier. As far as the rendering of service is considered, it is being rendered regularly by way of coaching classes. In case any invoice is issued to the students, then the service tax is payable on issue of invoice, irrespective of receipt of the fees. In case no invoices are issued and only cash receipts are issued as many clubs / associations do the liability to pay service tax arises on receipt of fees.
26 March 2016
Thanks sir, Please note that our centre provide animation coaching to students under Franchisee Agreement All fees works done on Franchisor portal, portal generate invoice according to installment basis (Even instalment not received) Please guide me in respect of calculation of Service Tax Thanks & Regards, Jatin
28 March 2016
If you recover fees on the basis of invoices generated by the franchisor, do you pass on the same invoice to your students. How do you intimate your students of their dues - irrespective of the franchisor's invoice, if the same is not passed on to the students and your centre issues no invoice to students - your service tax liability would be on receipt basis. However, if you issue a proper invoice to each student on your Centre's letterhead / bill with your PAN and STC claiming Service Tax, then the liability is from that date. However if you just intimate the students by a letter that a particular sum is due and payable on such and such date, whether ST is shown separately or not, then that is not an invoice and the liability to ST would arise on receipt basis only.
CAclubindia
