Service tax - Journalism Institutes exempted?
AS per Notification No. , DATED : September 10, 2004, taxable services provided in relation to commercial training or coaching, by a vocational training institute , is exempted.
The Manorama School of Communication sought a clarification from the Board whether the institutes providing training/ coaching in journalism, were covered under the exemption Notification.
The CBEC in a letter addressed to the Manorama School, clarified that “the institutes providing training/ coaching in journalism as mentioned in your representation are covered by the exemption under the said notification No.24/2004-ST.”
The Board's letter dated 24.12.2009 was also sent to the DG, Service Tax with a request to bring the clarification to the notice of the field formations. The said letter was received by the DGST on 5.1.2010 and the DG sent a copy of the letter to the field formations recently.
In the mean time in the budget, this notification was amended by Notification No. , dated 27-02-2010 and now vocational training institute means an Industrial Training Institute or an Industrial Training Centre affiliated to the National Council for Vocational Training, offering courses in designated trades as notified under the Apprentices Act, 1961(52 of 1961).
So journalism may not be covered under the new definition!
But the moot point is, in this era of transparency, why does the Board issue important clarifications secretly to its DG and one or two assessees? Why can't it be made public and issued as a circular? Is the benefit available to Manorama School not available to other journalism schools and how will they know it if the Board is so secretive?
CBEC Letter in F.No.137/23/2007-CX.4 Dated: December 24, 2009