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Service Tax Exemption to National Skill Development Corporation & others related to it

9A. Any services provided by, _ (i) the National Skill Development Corporation set up by the Government of India; (ii) a Sector Skill Council approved by the National Skill Development Corporation; (iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
Services by way of education as a part of an “approved vocational education course” are not liable to service tax as they  are included in the negative list of services [Clause (l) of section 66D].
The definition of “approved vocational education course” under section 65B(11) had been amended vide the Finance Act, 2013 to inter alia exclude therefrom the course run by an institute affiliated to the National Skill Development  Corporation (NSDC) set up by the Government of India. Consequently, a course run by an institute affiliated to the NSDC was no more exempt from service tax.
However, the exemption to the courses run by an institute affiliated to NSDC has now been reinstated as also the scope of the exemption has been widened by inserting entry no. 9A in the Mega Exemption List. The entry provides as under:
“9A. Any services provided by, _
(i) the National Skill Development Corporation set up by the Government of India;
(ii) a Sector Skill Council approved by the National Skill Development Corporation;
(iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
(iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council
in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a  vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c) any other Scheme implemented by the National Skill Development Corporation.”

Notification No. 13/2013 – Service Tax

Dated- 10th September, 2013

G.S.R….(E).­­_ In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.25/2012-Service Tax, dated 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. 467 (E), dated the 20th June, 2012, namely:-

In the said notification, in the opening paragraph, after entry 9, the following entry shall be inserted namely:-

“9A.   Any services provided by, _

(i)      the National Skill Development Corporation  set up by the Government of India;

(ii)      a Sector Skill Council approved by the National Skill Development Corporation;

(iii)     an assessment  agency approved by the Sector Skill Council or the National Skill Development Corporation;

(iv)     a training partner approved by the National Skill Development Corporation or the Sector Skill Council

in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c)  any other Scheme implemented by the National Skill Development Corporation.”

 [F.No. 356 /17/ 2012-TRU]

(Raj Kumar Digvijay)

Under Secretary to the Government of India

Note.- The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 25/2012 – Service Tax, dated 20th June, 2012, vide G.S.R. 467 (E), dated the 20th June, 2012 and was last amended by notification No. 3/2013- Service Tax, dated the 1st March, 2013 vide G.S.R. 153(E), dated the 1st March, 2013.

Categories: Service Tax
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