Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Tax Research Unit)
Circular No. 164/15/2012-ST
153, North Block,
New Delhi, 28th August, 2012
To
Chief Commissioner of Customs and Central Excise / Central Excise & Service Tax
(All)
Director General of Service Tax /Central Excise Intelligence /Audit;
Commissioner of Customs and Central Excise/ Central Excise and Service Tax/
Service Tax (All)
Madam/Sir,
Subject: service tax – vocational education/training course -- regarding.
Clarification has been sought in respect of levy of service tax on certain
vocational education/training/ skill development courses (VEC) offered by the
Government (Central Government or State Government) or local authority
themselves or by an entity independently established by the Government under the
law, as a society or any other similar body.
- The issue has been examined. When a VEC is offered by an institution of the
Government or a local authority, question of service tax does not arise. In
terms of section 66D (a), only specified services provided by the Government are
liable to tax and VEC is excluded from the service tax.
- When the VEC is offered by an institution, as an independent entity in the
form of society or any other similar body, service tax treatment is determinable
by the application of either sub-clause (ii) or (iii) of clause (l) of section
66D of the Finance Act, 1994. Sub-clause (ii) refers to “qualification
recognized by any law” and sub-clause (iii) refers to “approved VEC”. In the
context of VEC, qualification implies a Certificate, Diploma, Degree or any
other similar Certificate. The words “recognized by any law” will include such
courses as are approved or recognized by any entity established under a central
or state law including delegated legislation, for the purpose of granting
recognition to any education course including a VEC.
- This Circular may be communicated to the field formations and service tax assessees, through Public Notice/Trade Notice. Hindi version to follow.
Yours faithfully,
(S.Jayaprahasam)
Technical Officer, TRU
Tel/Fax: 011-23092037
F. No. 356/17 /2012 - TRU