Bring coaching institutes under tax net: AssochamJune 17th, 2009 - 7:13 pm ICT by IANS
New Delhi, June 17 (IANS) Coaching institutes must be brought under the tax net as they seldom disclose their earnings, the Associated Chambers of Commerce and Industry of India (Assocham) has said.
In a note submitted to the revenue department of the finance ministry Wednesday, Assocham said coaching institutes were charging “astronomically higher fee without submitting proper accounts of their income to tax authorities”.
The industry group said despite charging high fees from students, “they conveniently evade taxation”.
“Tax authorities ought to subject coaching institutes not only to income tax but other taxes such as service tax,” said Assocham secretary general D.S. Rawat.
According to Assocham, the top 100 such institutes across the country earn over Rs.10,000 crore from coaching students for entry into the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) alone.
“The tax authorities should conduct a detailed monitoring of their income as it is alleged that while enrolling students, the institutes hardly give them documentary evidences for receipt of their fees,” the chamber said.
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