Notification No. 13/2013-Service Tax, Service Tax

[swaraj kumar]

Dear Sir,

The brief of Notification No. 13/2013-Service Tax is as follows:

As per notification no. 25/2012-ST dated 20.06.2012 under entry no. 9A service provided in relation to skill development programmers shall be exempt from service tax w.e.f. 10.09.2013. Under this entry, following services shall be exempt from levy of Service Tax;

Any services provided by-

1. the National Skill Development Corporation (NSDC) set up by the Government of India;
2.  a Sector Skill Council approved by the National Skill Development Corporation;
3.  an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
4.  a training partner approved by the National Skill Development Corporation or the Sector Skill Council

in relation to

1. the National Skill Development Programme implemented by the National Skill Development Corporation; or
2. a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or
3. any other Scheme implemented by the National Skill Development Corporation.

 Then my query is : In connection with services provided by the Skill Council they receive a numbers of services from the different consultants say for example for developing course material, identifying training partners and other services and for which Skill Council will pay consultancy fees. Then my question, whether service providers of Skill Council will charge service tax to Skill Council or not. If yes i.e. Service provider of Skill council charging service tax then Skill Council is eligible for refund of service tax, if yeas what will be the procedure.

Kindly clarifies the above issue in the light of provision of service tax by referring Section/Rule/Notification.

Thanks & Regards

CA Swaraj Kumar

Mob. 9933884087

Posts / Replies

[Pradeep Khatri]

Dear Swaraj,

You have raised a good question.  There is no such clarification in the notification itself. It would be better if  you get a clarification from Service Tax Department.

Regards,

Pradeep Khatri

[PAWAN KUMAR]

Dear Sir,

As per my view, The service providers can claim exemption from service tax on services to the Skill Development Council providing further the Skill development Programme as per S.No.9 (a) of Notification No.25/2012-ST dated 20.06.2012. You may also read the circular No.172/7/2013-ST Dated 19.09.2013 for clarifications by the CBEC board.

[MANZIL SHAH]

Respected Sir,

National Skill Development Council (NSDC) providing Exempt Service as per e/n 25/2012, it will not extend to Provider of NSDC .'. NSDC liable to pay such Tax & as per Rule 6 of Cenvat Credit Rules, 2004 for providing exempt service any taxable input service consumed then, credit of tax paid on procuring such input service is not allowed.

& hence, Refund is also not allowed. Hope above solutions will match your querries satisfactorily.

Best Regards,

Manzil J Shah