13 August 2013
Suppose a professor is imparting knowledge to students in a college and gets professional fees there against where S. 194J is applicable and crosses the threshold laid down under Service Tax Act, would such professor be liable to charge service tax to the college or would he be exempted from the provisions? Would the scenario change if the college is not recognised?
13 August 2013
Yes service tax is to be paid if the amount is received in professional capacity...if the amount is received in the capacity of employment then sec.192 would be applicable and hence no service tax is to be levied...it is to be seen whether bill is raised by the professor or he is receiving in the form of remuneration....scenario would be the same whether the college is recognised or not..