Professional Documents
Culture Documents
1.07.2012, the concept of Service Tax has changed. What is taxed now is an activity which gets
covered under the scope of service as defined in section 65B(44) of the Finance Act, 1994 as
amended.
Charge of Service Tax on and after 1.07.2012 is defined under section 66B of the Finance Act, 1994.
Section 66B states that Service Tax shall be charged at the rate of 12% on value of all taxable
services i.e., other than those specified in the negative list or exempted services, which are provided
or agreed to be provided in the taxable territory by one person to another and collected in such
manner as may be prescribed.
Section 66B specifies the charge of service tax which is essentially that service tax shall be levied on
all services provided or agreed to be provided in a taxable territory, other than services specified in
the negative list. Thus, as per charging section 66B, Service Tax shall be applicable on all services
except negative list services or services which are specifically exempt from Service Tax.
time
If any of the aforementioned conditions is not satisfied, the education shall not qualify to be under
the negative list. The use of words law for the time being in force implies that such laws as are
applicable in India at a given point of time. In such cases, education is imparted under a prescribed
syllabus or curriculum and the education must be imparted as a part of such curriculum, i.e. it must
be a part of syllabus for such course or qualification. However, education leading to foreign
qualifications shall be liable to payment of Service Tax. In Indian, context, it may be noted that
recognition is granted by bodies such as University Grants Commission (UGC), All India Council of
Technical Education (AICTE) etc.
Approved vocational education course Approved vocational education course has been defined
in section 65B(11) of the Finance Act, 1994. These are
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 as notified
under the Apprentices Act, 1961. (w.e.f. 10-5-2013, affiliations to State Council for Vocational
Training are also covered)
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, Ministry
of Labour and Employment, Government of India.
a course run by an institute affiliated to the National Skill Development Corporation set up by
the Government of India. (only upto 9-5-2013).
The admission / examination fee is covered under negative list. Further, tuition fee or development
fees are also not liable for Service Tax. When students avail the services of admission / development
/ examination and pay the fees in respect of such services alongwith basic tuition fee, it may be
considered as a case of bundled services where tuition is having dominant nature covered under
negative list and accordingly, all other fees charged mandatorily along with tuition fees would not be
liable for service tax.
1. Services not in Negative List
Negative list may, therefore, not include
a)
Private tuitions
d)
Placement services
e) Services provided by educational Institutes such as IITs, ITMs charge a fee from prospective
employers like corporate houses / MNCs, who come to the institutes for recruiting candidates