TIOL-DDT 1434 · Monday, 30 August 2010 · story 2 of 4

Service Tax – Woes of a MBA Student

WE got this mail from a MBA Student.

I have done MBA as a part time student from TASMAC in PUNE validated by University Of Wales U. K., On 16 August 2005 TASMAC had put a notice on PUNE campus regarding service tax, mentioning that all the students of TASMAC have to pay service tax on the entire fees which they have paid and will be paid, whereas nothing been told to us regarding this matter at the time of joining the institute nor even it is mentioned anywhere in the documents given by the TASMAC earlier and I've been paying the fees in six installments out of which four installment I've paid, on consulting the matter to CA and lawyer I came to know that TASMAC can only ask the service tax on the amount which is remaining to pay and they can't ask us to pay the service tax on the amount which we have already paid, so I want your help in this matter and request you to kindly help me and all the students of TASMAC in this matter. They have held up my Certificate until I pay the service tax on the entire fees.

One such Management Institute is my client with regard to Service Tax on Commercial Coaching and Training. One of my colleagues is an MBA from that institute. When she came to know that her alma mater was my client, she requested me to charge a hefty fee as the institute had charged her a fortune for that MBA Degree, for which the Government wants to collect Service Tax as the degree is not recognised by law.

It is really unfortunate that in this country, we want to tax education, when the Government has failed miserably in its Constitutional responsibility of providing universal primary education.

Where knowledge is free ..... poor Gurudev