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
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
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
From India, Mumbai
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,
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,
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