Service tax on training and coaching services

Ravichander RC (Service) (120 Points)

02 March 2013  

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