G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided in relation to commercial training or coaching, by, -

(a) a vocational training institute; or

(b) a recreational training institute,

to any person, from the whole of the service tax leviable thereon under section 66 of the said Act.

Provided that nothing contained in this notification shall apply to the taxable services provided in relation to commercial training or coaching by a computer training institute.

(Proviso has been inserted vide Notification No. 19/2005-ST, DT. 07/06/2005)

Explanation.- For the purposes of this notification,-

(i) "vocational training institute" means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching;

(ii) "recreational training institute" means a commercial training or coaching centre which provides training or coaching relating to recreational activities such as dance, singing, martial arts or hobbies.

(iii) “computer training institute” means a commercial training or coaching centre which provides coaching or training relating to computer software or hardware.

(clause (iii) has been inserted vide Notification No. 19/2005-ST, DT. 07/06/2005)

[F. No. B2/8/2004-TRU]

(V. Sivasubramanian)
Deputy Secretary to the Government of India