The balance arrived at is the net amount of service tax that is payable by you. This is to be paid through the TR-6 challan.
I have gone through the piece in DNA Money wherein you have explained that we can claim 100% set-off. But the form/challan we are using for paying service tax does not have the column for set-off. We use Form TR-6. Tell us how we can claim set-off, and which form can we use. — Jayesh
You have to do the calculation of service tax payable by you in the following manner: determine the service tax that needs to be paid on the bases of the gross receipts realised in the month/quarter, determine the set-off available based on the payments made in the month/quarter and once the calculations are done, reduce the quantum of set-off available from the service tax payable. The balance arrived at is the net amount of service tax that is payable by you. This is to be paid through the TR-6 challan. You will have to keep a copy of the invoices based on which you have availed the set-off. The amount of set-off claimed has to be mentioned month-wise in the ST-3 return (half-yearly return of service tax).You can attach a statement of the invoices on the bases of which the set-off has been claimed along with the half-yearly return. The statement must mention the name of the service provider, his address, service tax registration number, date of invoice, invoice number, the gross bill amount, the amount of service tax and the amount of education cess separately. Based on this, you will be able to claim set-off of service tax and excise duty paid by you.
We are the franchisee of a leading international brand which is into Whole Brain Development using ABACUS and arithmetic calculation for children in the 5-14 age group. The progamme runs weekly for two hours and is recreational in nature. I would like to know whether such training will attract service tax? — Shruti Mishra
Section 65(27) of the Act defines a commercial training or coaching centre as “any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than sports, with or without issuance of certificate and includes coaching or tutorial classes, but does not include pre-school coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force.
Notification No. 24/2004 ST dated 10-9-2004 exempts taxable service provided in relation to commercial training or coaching by vocational training and recreational training institutes.
The notification holds that a recreational training institute is a commercial training or coaching centre which provides training or coaching relating to recreational activities such as dance, singing, martial arts or hobbies.
The service tax department in FAQs has clarified that coaching imparted to students in the 1-9 years age group is not taxable. As mentioned by you, one, it is recreational in nature, and two, the children are in the 5-14 age group. Taking these into consideration, the service provided by you shall not be taxable under the commercial training or coaching category.
mshethco@yahoo.co.in
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}