Circular No. 164/15/2012-ST
F. No. 356/17 /2012 - TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Tax Research Unit)
153, North Block,
New Delhi, 28th August, 2012
To
Chief Commissioner of Customs and Central Excise / Central Excise & Service Tax (All)
Director General of Service Tax /Central Excise Intelligence /Audit;
Commissioner of Customs and Central Excise/ Central Excise and Service Tax/ Service Tax (All)
Madam/Sir,
Subject: service tax – vocational education/training course -- regarding.
Clarification
has been sought in respect of levy of service tax on certain vocational
education/training/ skill development courses (VEC) offered by the
Government (Central Government or State Government) or local authority
themselves or by an entity independently established by the Government
under the law, as a society or any other similar body.
2. The
issue has been examined. When a VEC is offered by an institution of the
Government or a local authority, question of service tax does not
arise. In terms of section 66D (a), only specified services provided by
the Government are liable to tax and VEC is excluded from the service
tax.
3. When
the VEC is offered by an institution, as an independent entity in the
form of society or any other similar body, service tax treatment is
determinable by the application of either sub-clause (ii) or (iii) of
clause (l) of section 66D of the Finance Act, 1994. Sub-clause (ii)
refers to “qualification recognized by any law” and sub-clause (iii)
refers to “approved VEC”. In the context of VEC, qualification implies a
Certificate, Diploma, Degree or any other similar Certificate. The
words “recognized by any law” will include such courses as are approved
or recognized by any entity established under a central or state law
including delegated legislation, for the purpose of granting recognition
to any education
course including a VEC.
4. This Circular may be communicated to the field formations and service tax assessees, through Public Notice/Trade Notice. Hindi version to follow.
Yours faithfully,
(S.Jayaprahasam)
Technical Officer, TRU
Tel/Fax: 011-23092037
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