IN INDIA  - if a coaching centre is run as an institution, it must obtain a trade license and obtain and pay tax on the revenue it generates.

If the income exceeds Rs 0.9 million per annum, it become compulsory to register the business and pay service tax within 30 days.


The Education Act 2016 sought to ban the coaching centres  and private tuition. The government also issued its Policy 2012" in a bid to curb the coaching industry.

Teachers could provide at-home services to around 10 students belonging to an institution that they themselves are not affiliated with; that too, only after both the teacher's and students' school agreed to it. 


COACHING CENTRES have emerged as one of the most lucrative business ventures in the country. The profits the tuition industry makes are huge

Because minimal investment is required, the demand is enormous and ever growing and above all,  there is just no taxation.

In short the business is free-for-all.

Dr. Kaiser Bengali, an economist, estimated in 2014 that some tutors earn as much as  Rs 1 million  per month and pay no income tax on this amount; while a more recent independent survey estimates top tuition while an-

Independent survey estimates top tuition centres earn about Rs 10 million a month and teachers Rs 2 million by teaching in various coaching centres.

An effective strategy that coaching centres have adopted to enhance their popularity is branding.  Similarly, cities are flooded with well-known brands specialising in various science subjects and a number of professional qualifying examinations

An occupation once regarded as activity to augment income has now become the main income-generating vocation.

Coaching centres are a product of parents increasing obsession with their children's academic grades.

The massive increase in the number of coaching centres follows the basic principle demand and supply. However, no credible data about the number of coaching centres or their breakdown by location is available, making it very difficult to regulate the sector.

The World Students Society thanks author and researcher Khawaja Amer.


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