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Negative list query

Anoop (CA Final) (330 Points)

15 March 2013

In the negative list, under Sec.66D in item (l)(ii),

"Service by way of education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force"

my query is:-

a. only recognised courses are covered..?

b. does it cover foreign courses..?

c. what is the significance of "part of a curiculum"..?

Expecting your views,

Thanks and Best Regards

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2 Replies

Sunil (Trader) (2611 Points)
Replied 19 March 2013

1) Yes, only the services by the college, university etc. for such degrees are exempt. Not by the coaching class. 2) For personal use even if you avail taxable service from J&K or out of India, service tax is not payable on reverse charge. 3) In this case the service itself is exempt so technically it should not matter. However if a service is availed of by a receiver in India from a provider in J&K or outside India for use in business, he has to pay service tax as receiver on reverse charge mechanism. The notification is silent about non taxable services (negative list or place of provision in non taxable territory). Therefore it is assumed that even items like transaction in money if used for business in India is subject to service tax if availed from someone outside although if availed from within India it is exempt.

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Sunil (Trader) (2611 Points)
Replied 20 March 2013

By part of a curriculum it means that it is supposed to be a part of the lectures / study material provided by university or even college affiliated to the university to confer the degree or diploma as per law. These are all approved by UGC and AICTE which are acts of parliament and therefore LAW. However, if college gives tuition classes outside the scope of university and charges for it it is taxable. Only the fee that is for the course that has approval form the UGC is covered under negative list. Eg. if an aided college fee for BCom is 2500 and for non aided college the university approves for same course 8000, this is not taxable. However if same college gives you extra tuitions and charges you say 5000 per month for it, that cannot be a part of the curriculum and law. That is an independent contract between college and you even if the college is affiliated to the university.