Hello All, I seek your guidance on a matter regarding ST applicability.
Many of us free-lance trainers conduct 1-3 days programs on developmental HR topics, e.g. communication skills, creativity etc. Some conduct these as in-house programs in the premises of the client. Others may conduct these as open programs in hotels etc. In both cases, I have noticed that most trainers include the 10.2% ST on their basic fees.
Is ST applicable in such cases? In the list of taxable services, I see two services under which such programs may be considered for eligibility- Management consultancy and Commercial coaching and training. From the definitions of services as given in the act, I notice that such programs are NOT management consultancy. Even while checking them against the criterion of comercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate etc. Another sub clause in some circulars clearly states that ST is appliable to only those commercial coaching/training programs where the provider has an training establishment of own and is NOT applicable if he/she provides the training at the premises of the client ( unless sent there on behalf of another service provider who does have a training establishment of his own ).
From this,it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause.BTW, this is also the informal understanding of some officials of the ST ( Excise ) directorate in Mumbai.
I seek guidance from those who have some authoritative.
Knowledge on this issue. Is the ST applicable in such cases or not?
Best wishes
From India, Mumbai
Acknowledge(0)
Amend(0)
13Many of us free-lance trainers conduct 1-3 days programs on developmental HR topics, e.g. communication skills, creativity etc. Some conduct these as in-house programs in the premises of the client. Others may conduct these as open programs in hotels etc. In both cases, I have noticed that most trainers include the 10.2% ST on their basic fees.
Is ST applicable in such cases? In the list of taxable services, I see two services under which such programs may be considered for eligibility- Management consultancy and Commercial coaching and training. From the definitions of services as given in the act, I notice that such programs are NOT management consultancy. Even while checking them against the criterion of comercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate etc. Another sub clause in some circulars clearly states that ST is appliable to only those commercial coaching/training programs where the provider has an training establishment of own and is NOT applicable if he/she provides the training at the premises of the client ( unless sent there on behalf of another service provider who does have a training establishment of his own ).
From this,it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause.BTW, this is also the informal understanding of some officials of the ST ( Excise ) directorate in Mumbai.
I seek guidance from those who have some authoritative.
Knowledge on this issue. Is the ST applicable in such cases or not?
Best wishes
From India, Mumbai
Acknowledge(0)Amend(0)
Hello Martin I am sorry for the ambiguity in my message. By ST, I meant Service Tax and the context is Indian laws. Alok
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Alok
Many thanks for clarifying that for me - I hope you get the answers your are looking for.
Tell me, is Service Tax different to Sales Tax in India?
The reason i ask is that it's quite possible in the coming months that I will be doing some training evaluation with an Indian organisation.
Thanks again & best wishes
Martin
From United Kingdom,
Acknowledge(0)Amend(0)
Many thanks for clarifying that for me - I hope you get the answers your are looking for.
Tell me, is Service Tax different to Sales Tax in India?
The reason i ask is that it's quite possible in the coming months that I will be doing some training evaluation with an Indian organisation.
Thanks again & best wishes
Martin
From United Kingdom,
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
ST-27.jpg
SC 09 ESI IMP on Applicability.p df