Hello all,
I seek your guidance on a matter regarding ST applicability.
Many of us freelance trainers conduct 1-3 day programs on developmental HR topics, e.g., communication skills, creativity, etc. Some conduct these as in-house programs on 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 commercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate, etc. Another subclause in some circulars clearly states that ST is applicable only to those commercial coaching/training programs where the provider has a training establishment of their 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 their own).
From this, it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause. By the way, this is also the informal understanding of some officials of the ST (Excise) directorate in Mumbai.
I seek guidance from those who have some authority on this issue. Is the ST applicable in such cases or not?
Best wishes
From India, Mumbai
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13I seek your guidance on a matter regarding ST applicability.
Many of us freelance trainers conduct 1-3 day programs on developmental HR topics, e.g., communication skills, creativity, etc. Some conduct these as in-house programs on 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 commercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate, etc. Another subclause in some circulars clearly states that ST is applicable only to those commercial coaching/training programs where the provider has a training establishment of their 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 their own).
From this, it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause. By the way, this is also the informal understanding of some officials of the ST (Excise) directorate in Mumbai.
I seek guidance from those who have some authority on this issue. Is the ST applicable in such cases or not?
Best wishes
From India, Mumbai
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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
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From India, Mumbai
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Hi Alok,
Many thanks for clarifying that for me. I hope you get the answers you are looking for. Tell me, is Service Tax different from 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 organization.
Thanks again and best wishes,
Martin
From United Kingdom,
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Many thanks for clarifying that for me. I hope you get the answers you are looking for. Tell me, is Service Tax different from 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 organization.
Thanks again and best wishes,
Martin
From United Kingdom,
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Service Bonds - for Training Programs.docx