bring coaching institutes under income and service tax from s.c.dhall 9888073353

 

 

 

Bring Coaching Institutes Under Income & Service Tax:  

 

 

 

from s.c.dhall senior banker. 

 

 

 

Heavily tax coaching institutes, minting money on preparing young aspirants for their entry into civil & armed services, medical, engineering and management institutes of repute as these hardly make any disclosure of tuition fee annually accumulated by them, proposes   

 It has stressed that hundreds of coaching institutes, claiming expertise in fulfilling aspirations of young graduates to enter into aforesaid prestigious services are mushrooming and charging astronomically higher fee without submitting proper accounts of their income to tax authorities.  such institutes as make tons of money in the name of imparting perfect knowledge to young students, seeking to make career in civil and other services through competitive examinations, conveniently evade taxation though they charge unbelievable amount of money for preparing candidates for IITs and IIMs.

  time has come when tax authorities ought to awake to subject coaching institutes not only to income tax but other taxes such as service tax, since these earn lot of money in a year from young students.  coaching institutes to tax liability as part of its corporate social responsibility holds a view that roughly over Rs,10,000 crore of money annually is made by over 100 coaching institutes run across the country to prepare educated youths for IITs and IIMs alone.

Likewise, there are other coaching institutes located in various parts of the country particularly in lead metros and large townships charge fabulously for preparing eligible bachelors for civil and  provincial services and armed forces. There are coaching institutes that claim to be preparing eligible graduates for management trainees and probationary officers in public sector undertakings as well as banking system.

The coaching institutes have been flourishing over the years as they charge very high professional fees without making the disclosures of their income to relevant tax authorities and go escort free as far as their mandatory tax deposits are concernedaccording to Assocham.Such institutions should be brought under the tax net and tax authorities should conduct a detailed monitoring of their income as it is alleged that whie enrolling students for career making in such institute, their management hardly give them documentary evidences for receipt of their fee.  This should stop now, feels the Chamber.

It has mooted that the business of providing coaching should also be managed by the government as it involves lot of monetary benefits.  The government has over 957 employment exchanges located across the country with huge assets base.  Since, the intended purpose of employment exchanges have lost its relevance in new economies, majority of them should be converted into coaching institutes not only for civil and armed forces but also IITs, IIMs and other vocational courses as per study conducted by the Assocham.

  the main reason for declining share of employment opportunities by employment exchanges is mainly due to ample job opportunities provided by private job portals and other online players which conduct quick interviews in hassle-free atmosphere with  quick placements services.

The other state-owned recruitment centers like Union Public Service Commission, Staff Selection Commission, Railways Recruitment Board, Banking Service Commission which make direct recruitment have also eroded the efficiencies of the employment exchanges.

Since, mainly these employment exchanges provide jobs to middle-class, the Fee Structure in these centers should be at concessional rates with no compromise on quality of faculties and infrastructure.

 

 

s.c.dhall

163 sunny enclave, near paras down town mall, zirakpur pb 140603

mobile no. 9888073353