Is Personality Development Course Conducted by A Management Institute Liable to Service Tax?
March 24, 2009 by taxworry · Leave a Comment
If a management school provides a short term personality development residential course to professionals, shall the management school need to pay service tax on the fees received for such course? Shefali Jain , Delhi
Any service provided or to be provided by a commercial training or coaching center in relation to commercial training or coaching is a taxable service as per section 65(105)zzc of the Finance Act 1994 .
Section 65(27) of the Finance Act 1994 defines “commercial training or coaching centre” means 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 but does not include preschool 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;”
Prima facie the institute (management school in question) imparts training which enhances skill or knowledge of the participant certainly falls within the definition of taxable service “commercial training or coaching center ” and thus shall be liable for service tax .
Prima facie the institute (management school in question) imparts training which enhances skill or knowledge of the participant certainly falls within the definition of taxable service “commercial training or coaching center ” and thus shall be liable for service tax .
It has been held that the training program conducted by Bomaby Stock Exchange is laible to service tax. Refer Bomaby Stock Exchange Ltd vs CCE ,Mumbai-I 2006,-TIOL-660 CESTAT-Mum
However, if the institute imparts any course in “personality development” with a certificate recognised by law (mean UGC ) , same will get exempted as per the definition or the course of “personality development” is part of another course which is recognised by law , same will not be chargeable to service tax.
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