11 August 2011
assesee has education institute, assesee has agreement with university ( smu, symboisis etc) that assessee will get 50% of gross fees charged to student .
suppose assesse charged rs 20000 from student , and pays rs 10000 out of 20000 to university as per agrement , then question arises whether assesse charge service tax on Rs 20000 on gross or Rs 10000 which is his actual profit?
13 August 2011
It depends on the turnover. If the gross turnover exceeds 10 lac then service tax is to be charged and paid. The payer shall get the set off of the service tax paid.
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