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August 2011

(2011) 22 STR 650 (Tri.-Bang.) — Vikas Coaching Centre v. Commissioner of Custom, Central Excise & S.T., Guntur.

By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Valuation — Commercial training or coaching services — Whether hostel and mess charges includible while calculating the liability of service tax on their services.

Facts:
The appellants provided the service of ‘Commercial training or coaching’. In addition to the said taxable service, they also provided optional hostel and mess facility. The students opting for the hostel and mess facility were charged separately for the same. The appellants relied on the decision of the Tribunal in the case of Aditya College of Competitive Exams v. CCE, Visakhapatnam 2009 (16) STR 154 (Tri.-Bang.). According to the Revenue, hostel and mess charges were includible in the value of taxable service.

Held:
It was held that for calculating liability of service tax for providing commercial training or coaching service, the hostel and mess charges were not includible.

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