Tax on vocational education/training courses

CBEC- TRU has issued this Circular clarifying certain issues in relation to levy of service tax on certain vocational education/training/skill development courses (VEC). Accordingly, VEC offered by the Central Government or State Government or local authority themselves ,is covered in the Negative List under Section 66D and hence, service tax is not leviable. When the VEC is offered by an institution, as an independent entity in the form of society or any other similar body, service tax treatment is determinable by the application of either sub-clause (ii) or (iii) of clause (l) of section 66D. Services provided by way of education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force, are not chargeable to service tax. Services provided by way of education as a part of an approved vocational education course are not chargeable to service tax.