University - is it a dealer
Ram
(Querist) 17 May 2010
This query is : Resolved
dear sir,
My client is a deemed university under the UGC Commission.Their primary objective is to impart education. Incidentally they sell applications, prospectus etc to students at the time of admissions. My query is a university a dealer and sale of prospectus etc amonuts to business for levy of sales tax?
Pls Reply at the earliest
Regards
Ram
AMIT BAJAJ ADVOCATE
(Expert) 17 May 2010
It will depend upon the local sales tax or VAT laws whether they treat the prospectus or form as goods or not? and if so then at what rate its taxable under the relevent State VAT Act.
But to my understanding the sale of prospectus and forms should be treated as a part of educational service which a deemed university provides and service tax (if applicable) may be leviable on it. The VAT or sales Tax should not be leviable on it since prospectus or forms cannot be treated as goods as no property passes on to the purchaser by purchasing such forms.
Kiran Kumar
(Expert) 17 May 2010
certainly not a dealer.......forms and prospectus are part and parcel of the education process...in fact are meant to register a person and to impart the basic information to the student...its not a profit generating activity.
N.K.Assumi
(Expert) 18 May 2010
University is an Industry, and there is no doubt bout it.
Parthasarathi Loganathan
(Expert) 18 May 2010
However recent judgment of Supreme Court on the Regulation of Fee structure for schools would set a fine precedent in streamlining all such commercialization by bosses of deemed Universities in the country barring them from exploiting the general public at large.
