'Service tax on IIMs, a matter of dispute'
The issues surrounding the imposition of service tax on top B-schools of India could be taken up in the April meeting.india Updated: Mar 13, 2006 23:03 IST
The issues surrounding the imposition of service tax on top B-schools of India were a matter of "dispute", Indian Institute of Management Director Bakul Dholakia said on Monday.
Dholakiaalso said that these issues could be taken up in the meeting of IIM directors in April.
"IIMs are not a man-power recruitment agency as interpreted (by the ministry)," he told reporters in Ahmedabad.
Describing the issue as a "matter of interpretation and thereby disputed", Dholakia said the local government offices had approached the IIM-A in connection with the service tax issue and the institute had replied to the government regarding the matter.
The director of IIM-A said the institute incurred Rs 3.5 lakh as expenses on each student of the post-graduate programme of which Rs 1.5 lakh were recovered as fees from the students while the rest were recovered from the companies who came for campus recruitments.
"We charge USD 5,000 per student from an international company and about Rs 50,000 from domestic recruiters," Dholakia said.
He said if required the matters connected to the service tax will be taken up during the meeting of IIM directors which is scheduled to be held at IIM-A campus later next month.