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TMI BlogLeviability of Service Tax on the Flying Training School and Aircraft Maintenance Engineering Institutes - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... nance Engineer Licence (BAMEL). CPL and BAMEL are granted by Directorate General of Civil Aviation after conducting required examinations. These institutes have sought to cover-their activity under the exemption clause provided in the definition of "commercial training or coaching centre", as laid down in section 65(27) of the Finance Act, 1994, as it stood prior to the amendment in Budget of 2011. As per this definition, commercial training or coaching centre 'does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force. Their contention is that the certificates issued by them are re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing provided by a commercial coaching/training centre in relation to commercial coaching that forms an essential part of a course or a curriculum being offered by any other institute or establishment leading to issue of a degree or qualification recognized by law for the time being in force. However, the said exemption is subject to the condition that the exemption shall not be applicable if the charges towards the course are being paid directly to the coaching centre in question. Thus, in the current case, it can be argued that the flying academies are providing coaching that ultimately culminates in issuing of the CPL by the DGCA (even though that is not a guarantee inasmuch as it is subject to clearing the exam). This, CPL is definitely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (prior to Budget 2011) and therefore would be taxable. 4. In the Finance Act, 2011, w.e.f, 1-5-2011, the definition of Commercial Training or Coaching service as provided under section 65(27) has been amended to mean - "any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes". The exclusion clause available earlier on is now gone. However, vide Notification No. 33/2011 - ST, dated 25-4-2011. Exemption has been provided to two categories which are - (i) any pre-school coaching or training; (ii) any coaching or training leading to grant of a certif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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