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The following services relating to education are specified in the negative list till 13.5.2016 –:-

 

Pre-school education and education up to higher secondary school or equivalent;

Hence no service tax on school fees of pre schools and schoold upto Class XII, even international schools are covered in negative list)

 

  Education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

  • Law here means Indian law
  • Hence, if course is recognized in India, then only it is covered in negative list
  • Even admission fees and entrance test fees of such recognized courses covered in Negative list
  • If recognized by foreign country but not by India,then not covered and hence taxable)

 

Education as a part of an approved vocational education course.

These include

  • course run by an industrial training institute/centre affiliated to National Council for Vocational Training or State Council for Vocational Training
  • Modular Employable Skill Course, approved by the National Council of Vocational Training . It should be run by a person or institute who is  by Directorate General of Employment and Training, Union Ministry of Labour and Employment

 

 Note:-

  • Certain institutes provide campus placement service and invites companies to their campus/
  • These institutes charge fees from these companies
  • Service tax is applicable on these as these are not covered in negative list.

Whether Vocational education course offered by Institutions as independent entities taxable?

These are not covered in negative list and hence taxable.

However, if these are approved, then exempt.

 

From 14.5.2016 (New Amendment)

These are removed from Negative list

However,they continue to be exempt as Service is now covered under Mega Exemption Notification)

 

 

QUESTIONS

Question 1
Comment on the applicability of service tax in case of vocational educational courses (VEC)
run by the following institutes:
(a) ‘Udaan’ - An industrial training institute (ITI) affiliated to the National Council for Vocational Training (NCVT).

View Answer

(b) ‘A-Star’ - A vocational education provider affiliated to Sector Skill Council (SSC) approved by National Skill Development Corporation (NSDC).

View Answer

(c) ‘Best Skill Centre’ - An industrial training centre (ITC) affiliated to the State Council for Vocational Training (SCVT), Delhi.

View Answer

(d) ‘Horizon - An institute, registered with Directorate General of Employment and Training (DGET), Union Ministry of Labour and Employment, running a Modular Employable Skill
Course (MESC) approved by the National Council of Vocational Training.
The courses offered in point (a) and (c) are in designated trades notified under the Apprentices Act, 1961.

View Answer

 

  1. Indirect Tax
  2. Amendments Indirect Tax for May 2017 Exams
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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