Service Tax
Gaurav Agarwal
(Querist) 01 November 2010
This query is : Resolved
I run a Education management company. We help trust manage schools and help them build schools from scratch till day-to-day operation of school. For our work schools/trust pay us a annual fees. Do we need to pay service tax on such amount? Kindly quote applicable service tax rules, circular etc.
Gaurav Agarwal
(Querist) 01 November 2010
Dear Vishal
Your views are in complete disagreement with Mr. Subramanium, I believe you should elaborate and quote applicable rule or circular to substantiate your reply.
Gaurav Agarwal
(Querist) 01 November 2010
Dear Mr. Basu
Will be obliged if you could elaborate a little more on your reply. Most of the expert opinion otherwise!
Gaurav Agarwal
(Querist) 01 November 2010
More details from experts will help.
R.Ramachandran
(Expert) 01 November 2010
"Management or Business consultant's Services" means any person who is engaged in providing any service, either directy or indirectly, in connection with the management of any organization or business in any anner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, poduction management, logistics management, procurement and management of information technology resources or other similar areas of management.
You say that: "we run a Education management company. We help trust manage schools and help them build schools from scratch till day-to-day operation of school. For our work schools/trust pay us a annual fees. Do we need to pay service tax on such amount? Kindly quote applicable service tax rules, circular etc."
The above advices / help being rendered by you to the Trust, appears to me as falling under 'Management or Business Consultant Service' and therefore liable to service tax.
pawan sharma
(Expert) 02 November 2010
Agree with Mr. Ramachandran.
Gaurav Agarwal
(Querist) 02 November 2010
Dear Experts
Mr. Ramachandran views seems logical and justified. Would you like to comment otherwise particularly Mr. Vishat and Mr. Basu?
A V Vishal
(Expert) 02 November 2010
In my view the para produced by RR is self explanatory since you are only involved in setting up the educational institution and beyond that don't involve in day to day management or affairs of the institution actively therefore you are not rendering any taxable service and hence not liable to service tax.
