Captive Consumption - Educational Institution

r rahul
Can there be any captive consumption for school college or educational institution.
Is student cost changing from one course to another is captive consumption
Dinesh Divekar
Dear Rahul,
The term "Captive Consumption" is defined as "Captive consumption means goods are not sold but is consumed by the factory itself. In which case it is understood that excise credit cannot be availed. PO has to be made with non deductible excise so that the duty values are inventorised".
Education sector is a service sector. You do not produce anything for your internal consumption. Therefore, how "student cost" can be captive consumption is not understood.
Nevertheless, you may give further clarification on your query.
Thanks,
Dinesh Divekar
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