Will coaching on driving be considered as a vocational course? Will it attract Service Tax in India?
As per Notification No. 24/2004-Service Tax, vocational course is described as “vocational training institute” means a commercial training or coaching centre which provides vocational training or coaching that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching. People attend driving classes for either [a] driving self vehicle (not employed as driver) or [b] to become a professional driver (employed as driver). For [b], the notification clearly exempts from service tax. Where as a person in category [a], if s/he wants, can also seek employment as a driver. It means, this training enables them to “to seek employment or undertake self-employment”. Hence here also you can get the exemption. To conclude, no service tax applicable to you, as per my understanding.
