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Service Tax on Vocational Trainning Institute

AKGEETA (IT Practisioner) (23 Points)

15 October 2007

We are proposing to start an Institute of Digital Design ( A Vocational Training Institute, 100% job oriented) under the AOP firm. This institute provides training in various fields i.e. fashion design, interior design, animation etc. to guarantee them job placement as well as enable them to be self employed.

In this scenario, Are we exempted from service tax in view of notification no.4/2004 dt. 10.9.2004 ?

Kindly give your valuable clarification in this regard and oblige.

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1 Replies

MAHENDRA IYER (SERVICE) (315 Points)
Replied 16 October 2007

Vocational Training has been defined as to mean a commercial training or coaching centre which provides vocational coaching or training that imparts skills to enable the trainee to seek employment or undertake self employment, directly after such training or coaching. From the above it is clear that to claim exemption under notification no. 24/2004 dt 10.09.2004 the definition of vocational institute should be considered i.e. after undergoing training, the students sould be able to seek employment or undertake self employment.