Service tax on library fee, hostel fee, Service Tax

[shirish Nagchandi]

my client runs a coaching institute. he is charging service tax on the tuition fee only. during the recent audit by excise department,it has been instructed that service tax should also be charged on library fee, hostel fee. pl. explain the correct position.

Posts / Replies

[V Ramanujam]

As per the provisions, when service is taxable, tax is applicable on gross amount charged irrespective of the head of charges, unless such charges are specifically excluded under the provisions. Thus, in respect of your case, the audit is right in demanding tax on other charges as there is no exclusion is available under the 'commercial coaching service'