What are the tax implications on coaching center

Mr Jain

As per your query you intend to start test series, kindly give details as to what exactly you intend to do? Do you intend to publish material for the test or intend to coach and conduct the mock test. In case you intend to do the first thing there is no Service tax, however, if you intend the second thing then you need to pay Service Tax. Apart from it I advise you to open a separate account for depositing the income collected out of this activity, since you are employed and drawing salary I hope you are filing your returns, apart from the salary income you will be required to declare the net income from the proposed activity earned during the F Y 09-10. You need to apply for municipal license to operate if you intend running a coaching centre.