Service tax on training and coaching services

1315 views 3 replies

Ravichander RC

Service

120 Points Joined June 2009

Hi,

We provide training and coaching services to students. As part of the course curriculum, we are providing course material on the subject and we collect the cost of course material and training fee in the bill. We are charging service tax only on the portion of the training fee.

For Eg:

Cost of study material Rs.3000.00

Training fee Rs.1000.00

Service tax @ 12.36% on Rs 123.60

Rs.1000/- ------------------

Total billed value Rs.4123.60

=========

My query -

Is the above billing correct ?

Whether the above nature of services comes under works contract (since both material and service is involved), if so , what is the percentage of the value on which service tax need to be charged.?

Please clarify?

Thanks

Replies (3)

Pawan Mittal

CA Final

711 Points Joined July 2012

why don't you provide for vat for books sold?

Manoj Agarwal

Service Tax Consultant Rourkela Service

3456 Points Joined March 2012

Dear Sir, It will not fall under 'Works Contract' because the activity is not in the nature of construction, erection, commissioning, repair, renovation, etc. In my view, service tax should be collected on the entire value including study material(i.e. on Rs. 4,000 in above example) as cost of study material is neither in the negative list, nor any exemption is applicable.