Pvt tuition class owners under service tax scanner

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Private
tuition and coaching classes in the city have come under the scanner of
anti-evasion wing of service tax department of central excise and customs.


The
department has unearthed Rs 40lakh worth of tax evasion by carrying out search
at the business premises of 12 tuition and coaching class owners across the
city in the last few days.
Officials
said the service tax officials posed as parents and approached the tuition and
private coaching classes in different parts of the city. The officials found
that the class owners charged hefty fees. However, when the raids were carried
out the officials were shocked when they checked the registers and gathered the
details of the fees collected from the students. The fees entered were almost
50% and the registered students were shown 40% less on the rosters.

It is
mandatory for the tuition class and private coaching class owners to deposit
14% of the fee charged to the students as service tax. In order to evade the
service tax, the tuition class owners were showing few students on the rosters
and even the fees was 50% less. “A campaign
has been started against the class owners evading taxes payable to the
government exchequer. There are many classes in the city that are not
registered with the service tax department and are running the illegal business
of coaching the students to earn money,” said a senior service tax officer.
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