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Admission commission received from deemed university

Jatin (B.Com) (473 Points)

24 September 2016

Dear Experts, Please guide me on following issue: We have received Admission Commission from deemed university for students taking admission to university through our university authorized Information Center. We are liable to pay service tax on commission recd after deducting TDS by university or not. We are provide only admission information to students Regards, Jatinder Kumar

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 24 September 2016

TDS amount deducted is refundable after deduction of your tax liability, by filling your ITR for the PY.

Wide Notification No. 25/2012-Service Tax, dated 20.06.2012, Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-

(a) auxiliary educational services; or

(b) renting of immovable property;

So, no service tax liability.

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Jatin (B.Com) (473 Points)
Replied 24 September 2016

Thank you very much Sir,

Please note, students taking admission in university Correspondence Courses through our information Centre. We are recd. fixed percentage of Commission

Our service is fall under auxiliary education services or not

Regards,

Jatinder Kumar

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 24 September 2016

Have your commission exceeded 10L?

Check whether the univeristy has been exempted from the payment of Service tax? As not all universities are exempted from service tax.

Jatin (B.Com) (473 Points)
Replied 24 September 2016

Again Thank you very much Sir,

Yes, Commission recd. above Rs. 10 Lakhs.

Please note, suppose Commission Recd from university 11500 on Rs. 115000.00 @ 10%

Will pay service on reverse calculation 11500*15/115 = 1500 from our pocket (If we are liable to pay service tax on commission recd.)

Iam not clear about service tax pay or not

Regards,

Jatinder Kumar

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 24 September 2016

Actually, you are supposed to charge the service tax to the university, and then pay the same to treasury. But in case your arrangement is in such a way, then you may have to pay from your pocket. So, once again check if any service to the particular institute is exempted from service tax. This information can be available from the institute itself. If exempted, take a copy of the same for your records. Otherwise, pay from your end.