Hello all,
I seek your guidance on a matter regarding ST applicability.
Freelance Training Programs and ST Applicability
Many of us freelance trainers conduct 1-3 day programs on developmental HR topics, e.g., communication skills, creativity, etc. Some conduct these as in-house programs on 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 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 commercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate, etc. Another subclause in some circulars clearly states that ST is applicable only to those commercial coaching/training programs where the provider has a training establishment of their 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 their own).
From this, it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause. By the way, this is also the informal understanding of some officials of the ST (Excise) directorate in Mumbai.
I seek guidance from those who have some authority on this issue. Is the ST applicable in such cases or not?
Best wishes
I seek your guidance on a matter regarding ST applicability.
Freelance Training Programs and ST Applicability
Many of us freelance trainers conduct 1-3 day programs on developmental HR topics, e.g., communication skills, creativity, etc. Some conduct these as in-house programs on 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 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 commercial coaching and training, it is seen that commercial coaching is that which makes a person eligible for some certificate, etc. Another subclause in some circulars clearly states that ST is applicable only to those commercial coaching/training programs where the provider has a training establishment of their 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 their own).
From this, it seems that ST is not applicable in such programs. However, I may have misunderstood or missed some clause. By the way, this is also the informal understanding of some officials of the ST (Excise) directorate in Mumbai.
I seek guidance from those who have some authority on this issue. Is the ST applicable in such cases or not?
Best wishes