Response

Education is in the Concurrent list and all the decisions that are made in relation to education are made jointly. Coaching centre’s play an imporatant part in education. In our country there are a lot of coaching institutions. Some are of big size and others of small. Not every coaching institute is required to be registered. If the financial gain of the centre exceeds 9 lakhs per annum, registration of the business becomes mandatory and service tax becomes payable within 30 days.

Now in your case, your coaching centre’s revenue is nearly 9 lakhs per annum and thus it becomes mandatory to register the coaching centre. Here, your profit will not be considered your revenue from the operations will be considered. All businesses are required to be registered under the Shops and Establishments Act with the inspectorate of that area. This must be done within a monthÕs time of setting up the business .Subsequent to which a statement is to be issued to inspector.

In the statement, name, address, nature and so on of the business is to be mentioned. The registration process will differ and will depend on the nature of the business that is being registered that is either sole proprietorship or as a partnership business or as a company.

Reference: The Shops and Establishments Act, 1953

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LAWAYZ-2023-760