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TMI BlogService tax liability on commercial coaching.X X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax liability on commercial coaching. X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalyani: The Reply: Providing Commercial coaching service is a taxable service liable for service tax. What is DOEACC ? Reply By Mahir S: The Reply: Sir, I have divided the reply in 04 parts as discussed below. Reply By Mahir S: The Reply: (A) Yes, service tax is applicable on commercial coaching services as explained above. However, exemption from service tax is provided vide section 66D(l) u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder negative list if services relates to:- Services by way of - (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by law; (iii) education as a part of an approved vocational education course. (B) Meanings and Definitions: Section 65B(11) - "approved vocational educatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n course" means,-- (i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961; or (ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General of Employment and Training, Union Ministry of Labour and Employment; or (iii) a course run by an institute affiliated to the National Skill Development Corporation set up by the Government of India; (C)The Department of Electronics and Accreditation of Computer Courses (DOEACC) is an autonomous scientific society under the Indian Ministry of Communications and Information Technology. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here are five computer courses offered from DOEACC. (D) In view of above, please confirm if the DOEACC is an approved vocational educational course. If yes, then it is exempted from service tax payment. Manash ji, my work is over, now your work begins.. Reply By Akash Deep: The Reply: Dear Sir, As Doeac is a certificate course in computer application. the certificates issued under this this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse is also recognised under law. hence services are covered under negative list. no service tax. when a service is covered under negative list of services, it is a non -taxable service and not exempted service. to be an exempted service it has o be a taxable service first. technically. there is a difference between exempted service and non taxable service. Reply By KASTURI SETHI: The Reply: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clause (iii) to Section 65 B (11) stands omitted w.e.f. 10.5.13. The institution providing the computer training/course must be affiliated to National Council for Vocational Training, New Delhi or State Council for Vocational Training in order to be categorized as Negative List under Section 66 D (l), failing which service would fall under the taxable category. The basis of my reply is the detaile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d information provided by Sh.Mahir S. and Sh.Akash Deep, Sirs in their replies 10.2.16 and 11.2.16 respectively. Thanks to both experts.There is no doubt about the difference between non-taxable service and exempted service. Reply By Mahir S: The Reply: Yes Kasturi Sir ji, perfectly explained. The pre condition regarding Approved Vocational Education Course is required to be satisfied to fall u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the negative list category. Reply By Ganeshan Kalyani: The Reply: Thanks to Sri Mahir ji, Sri Akash ji and Sri Kasturi Sir for your nice reply. It in fact enriched my knowledge. Thanks. Reply By vijay kumar: The Reply: Please refer to the following provisions of Finance Act, 1994. "66D(l) services by way of- (i) pre-school education and education up to higher secondary school or eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; 65B (11) "approved vocational education course" means,-- (i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cational Training 2[or State Council for Vocational Training] offering courses in designated trades notified under the Apprentices Act, 1961; or (ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Employment and Training, Union Ministry of Labour and Employment; " Thus, negative list cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs the above 3 types of courses and vocational course is defined as above, at present. Apart from this, services provided by an educational institution (defined as below) are exempted under Mega exemption Nofn.25/2012-ST. [(oa) "educational institution" means an institution providing services specified in clause (l) of section 66D of theFinance Act,1994 (32 of 1994);] Analyzing your case in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above framework, short term commercial coaching / training courses are taxable, no doubt. Regarding DOEACC (Department of Electronics and Accreditation of Computer Courses), please check whether the qualification / degree awarded at the end of the course is recognized by law for the time being in force or it qualifies to be the vocational course within the definition extracted above. If yes, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not taxable. Otherwise, even such courses are taxable. X X X X Extracts X X X X X X X X Extracts X X X X
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