Cenvat Rules - Commercial Coaching & training, Service Tax

[satbir singh wahi]

Sir Can u explain by way of example the new cenvat rules for Commercial Coaching & training Company which renders both taxable and exempted services and no seperate record is kept for input services as to taxable & exempted services.Also clarify whether TOEFL & IELTS cources are exempt under vocational services in respect of forign language cources. Satbir Singh Wahi Fca 09143-31105 [email protected]

Posts / Replies

[V Ramanujam]

As per the amended CENVAT Rules, in the absence of separate records, the service provider providing both taxable/exempted service is to either pay 8% on value of exempted service render or to reverse the CENVAT Credit relatable to inputs/input services used in providing the exempted service (as per formula prescribed). Thus, if render any vocational course, either you have to pay 8% on its income or to reverse the CENVAT on input service relatable to providing of such course. But I feel TOEFL/IELTS course may not come within the term 'vocational course' which may be examined.