Understanding Captive Consumption in Schools: How Do Course Costs Affect It?

Can there be any captive consumption for a school, college, or educational institution? Is the student cost changing from one course to another considered captive consumption?

Understanding Captive Consumption in Education

The term "Captive Consumption" is defined as "Captive consumption means goods are not sold but are consumed by the factory itself. In this case, it is understood that excise credit cannot be availed. A purchase order has to be made with non-deductible excise so that the duty values are inventoried."

The education sector is a service sector. You do not produce anything for your internal consumption. Therefore, how "student cost" can be considered captive consumption is not understood. Nevertheless, you may provide further clarification on your query.

Thanks,
Dinesh Divekar