Service Tax - 'National Skill Development Corporation' - Exempted

By Vijay Kumar

FROM 1.7.2012, 'education as a part of an approved vocational education course' was under the Negative List and so was not taxable. Section 65B(11)(iii) defined approved vocational education course asa course run by an institute affiliated to the National Skill Development Corporation set up by the Government of India;

In the 2013 Finance Act, this clause (iii) was deleted. Why? The Memorandum to the Finance Bill 2013 explains - "Definition of 'approved vocational education course' provided in section 65B (11) is being amended: firstly, the words, 'or State Council of Vocational Training' (SCVT) is being inserted in (i), and secondly, entry at item serial number (iii) is being omitted, for NSDC is not an affiliating body.

Now, the Government has exempted any service provided by

1. the National Skill Development Corporation set up by the Government of India;

2. a Sector Skill Council approved by the National Skill Development Corporation;

3. an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

4. a training partner approved by the National Skill Development Corporation or the Sector Skill Council

Now, was the above service taxable all these days?

Notification No. 13/2013 - ST., Dated: September 10, 2013