CIR. NO. 127/09/2010- ST, DT. 16/08/2010
- Document type
- Circular
- Reference no.
- K
- Dated
- Category
- Service Tax Circulars-Year 2010
Service tax on commercial training and coaching-clarification whether (donation) is (consideration)
Service tax on commercial training and coaching-clarification whether (donation) is (consideration)
2. The matter has been examined. The important point here is regarding the presence or absence of a link between consideration and taxable service. It is a settled legal position that unless the link or nexus between the amount and the taxable activity can be established, the amount cannot be subjected to service tax. Donation or grant-in-aid is not specifically meant for a person receiving such training or to the specific activity, but is in general meant for the charitable cause championed by the registered Foundation. Between the provider of donation/grant and the trainee there is no relationship other than universal humanitarian interest. In such a situation, service tax is not leviable, since the donation or grant-in-aid is not linked to specific trainee or training.
4. Trade Notice/Public Notice may be issued to the field formations accordingly
5. Please acknowledge the receipt of this circular. Hindi version follows.
(J. M. Kennedy)
Director, TRU
Tel: 011-23092634