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Circular No. 164/15/2012-ST
F. No. 356/17 /2012 - TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Tax Research Unit)
153, North Block,
New Delhi, 28
th
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.
2. 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.
3. 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.
4. 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
circulars no 164 15 2012 | iKargos