Service tax on educational institute
CA Aninda Chatterjee (ACA, M.Com ) (255 Points)
31 October 2012CA Aninda Chatterjee (ACA, M.Com ) (255 Points)
31 October 2012
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 31 October 2012
Educational service is provided by you and not your business partner. They will charge service tax to you.
But you should take credit of service tax charged by them, bcoz for you it is input service. So, there is no double taxation. You have to pay service tax on full fees charged.
In net, your expense= Tax on fees- tax paid to Business partner
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 01 November 2012
Although you can argue that both of you are jointly providing service to students and sharing the fee, it is litigation prone and only court can settle the matter. This is why your partner has been adcvised to pay tax. But you can claim cenvat credit of the tax paid by your partner.