Online education and tutoring

Hi,

Yes. As per service tax law only following service is exempted -

Services provided-
(a) to an educational institution by way of catering under any centrally assisted mid – day meals scheme sponsored
by Government;
(b) to or by an institution in relation to educational services, where the educational services are exempt from the levy
of service tax, by way of transportation of students or staff;
(c) to or by an institution in relation to educational services, where the educational services are exempt from the levy
of service tax, by way of services in relation to admission to such education;

Also, the services are rendered from India hence it is taxable.

Warm Rgds,

Vikas Goel

A.C.A., CS, D.I.S.A., B.com

Although Service Tax is liable to be paid on such Income, you can claim exemption of being a small scale service provider if your gross turnover is less than Rs. 10 Lakhs

yes the service by private tutor is liable to be charged under service tax and it is covered under the category of exemption. The services provided being in india he is liable for the service tax, although the receipients are students from outside india.

As for as income tax is concerned, the sergice providers income is chargeble to tax , he beinjg a resident and ordinarily resident.  However yhe service tax paid by him can be taken as expenses and debited to profit andloss accout

The web site is on indian platform.  What they charge may be facilitating charges. it appears the burdenis on you tobear that chargae which may be calimed as expenses.

advocaate. A.R.Sathyan. MA,llb. tax expert.