Applicability of ST on programs of developmental HR

Hello All
I seek your guidance on a matter regarding ST applicability.
Many of us free lance trainers conduct 1-3 days programs on developmental HR topics e.g communication skills, creativity etc. Some conduct these as in-house programs in the premises of the client. Others may conduct these as open programs in hotels etc. In both cases, I have noticed that most trainers include the 10.2% ST on their basic fees.
Is ST really applicable in such cases? In the list of taxable services, I see two services under which such programs may be considered for eligibility- Management consultancy and Commercial coaching and training. From the definitions of services as given in the act, I notice that such programs are NOT management consultancy. Even while checking them against the criterion of comercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate etc. Another sub clause in some circulars clearly states that ST is appliable to only those commercial coaching/training programs where the provider has an training establishment of own and is NOT applicable if he/she provides the training at the premises of the client ( unless sent there on behalf of another service provider who does have a training establishment of his own ).
From this,it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause.BTW, this is also the informal understanding of some officials of the ST ( Excise ) directorate in Mumbai.
I seek guidance from those who have some authoritative
knowledge on this issue. Is the ST applicable in such cases or not?
Best wishes

Do I assume that "ST" refers to sales tax?

Nowhere in the message is "ST" defined, so I am guessing at it's meaning from the context of the message.

Also, do I assume that the message refers to the tax regime in India? Again this is not explicit in the message.

I am based in the UK, but am I to assume that this forum is Indian-centric and so unless otherwise stated, questions regarding tax, finance and employment law will be assumed to have an Indian context?

I don't have any problems with this forum being Indian-centric - most of the contributions seem to be from Indian nationals. But there are other nationalities involved too, so it may be helpful if future postings from all of us state which country we are relating to on matters of tax, finance and law.

The UK sales tax regime, known as Value Added Tax, is set at 17.5% except for some items and exemptions (e.g. certain food stuffs and childrens clothes, any books, etc). If I sell a book, there is no VAT to pay, but if that book is a training manual, it is no longer a book, it is a service/knowledge, and VAT must be made. It is also normal for trainers to quote their fees without the sales tax added. Any business turning over GBP 56,000 per year or more MUST register for sales tax and make quarterly returns to the Customs & Excise department of the government.

It interests me to know that there are quite different systems and rates around the world.

Thank you.

Martin Schmalenbach
www.5boxes.com

Hello Martin
I am sorry for the ambiguity in my message. By ST, I meant Service Tax and the context is Indian laws.
Alok

In Canada, we have a national "GST" Goods & Services Tax -- 7%; and local provincial "PST" Provincial Sales Taxes, ranging from 0% Alberta to 8%.

GST isn't payable on certain foodstuffs, children's clothes/shoes, and assorted other stuff.

Hi Alok

Many thanks for clarifying that for me - I hope you get the answers your are looking for.

Tell me, is Service Tax different to Sales Tax in India?

The reason i ask is that it's quite possible in the coming months that I will be doing some training evaluation with an Indian organisation.

Thanks again & best wishes

Martin

Hello Martin
Yes, they are diferent. Sales tax would soon be replaced by the VAT ( Value Added Tax ) system. But Service Tax, which is presently being handled, surprisingly, by the Excise & Customs department, will stay. All official details are on http://www.servicetax.gov.in/servicetax/. You may also look up www.cbec.gov.in
Best wishes
Alok