Is Service Tax applicable to the training programs being conducted by a non-governmental organization (NGO)?

Question:

I am from Project Management Institute, Bangalore Chapater. We conduct monthly training programs preparing participants for PMP certification and also conduct conrporate training for the employees of the corporates in their premises. We being a non-governmental, non-profit orgnaization, do we need to have service tax registration and charge service tax? Please clarify.

Answer:
The definition given by Service Tax Dept says that :

26) “ commercial training or coaching” means any training or coaching provided by a commercial training or coaching centre;

(27) ” commercial training or coaching centre” means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching and tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or nay educational qualification recognized by law for time being in force;

If you still have doubts, then better consult your CA.

For more info on Service Tax visit the official website at :

http://www.servicetax.gov.in/servicetax/...

Service tax is on 'commercial training or coaching centre' which means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include preschool 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;

Being Non-profit organisation does not confer any exemption from liability of Service Tax. If the service / training provided by you falls under the above defination, you are liable to pay tax. However, if your turnover of taxable service is below Rs. 4 Lakhs, you are exempted under Notification 6/2005-ST, subject to conditions of that notification.

Further, If you issues a certificate, diploma or degree recognized by law, it is outside the purview of “commercial training or coaching institute”. (para 2.2 of CBEC circular No. 59/8/2003 dated 20.06.2003.

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Http://www.bcasonline.org/know...

Is Service Tax applicable to the training programs being conducted by a non-governmental organization (NGO)?

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