Login | Register Now | Contact Us   
 

Finance Bill Proposes mandatory pre-deposit of duty or penalty or both before filing of AppealBudget 2014-15 : Sale of space for advertising has been made taxable except for print media.Budget 2014-15 : Radio Taxis are now taxable.Budget 2014-15 : Education : The definition of Auxiliary Education Services has been scraped.Budget 2014-15 : Works Contract : 2 slab rates prescribed in place of earlier 3 slabs.Budget 2014-15 : E-payment of Service tax is being made mandatory with effect from 01.10.2014.Budget 2014-15 : POPS: Definition of intermediary is being amended to include the intermediary of goods in its scope.

Latest Amendments
172/7/2013 S.T

Dated :  19/09/2013

Clarification regarding Education services

146-F, North Block
New Delhi, 19th September, 2013

F. No.B1/14/2013-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise& Customs

Tax Research Unit

To
Chief Commissioners of Central Excise and Service Tax (All),

Director General (Service Tax), Director General (Central Excise Intelligence),
Director General (Audit),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).

Madam/Sir,

Subject: Education services – clarification -- reg.

The following representations have been received seeking clarifications regarding the levy of service tax on certain services relating to the education sector:

1.     Private Schools Correspondents Confederation, Madurai.

2.     Tamil Nadu Nursery, Primary, matriculation and Higher Secondary Schools Association, Chennai.

3.     Punjab Association, Chennai.

4.     Association of Self financing Universities of Rajasthan

5.     Unaided Schools’ Forum, Mumbai.

6.     Vedavalli Vidyalaya, Wallajapet.

7.     Independent Schools Associations, Chandigarh.

8.     Mother Teresa Public School, New Delhi.

9.     BVM Global, Chennai.

10.  Sastra University, Tanjavur.

11.  HLC International, Chennai.

12.  Sodexo Food Solutions, Mumbai.

13.  Federation of Associations of Maharastra, Mumbai.

2. The matter is covered by two provisions of the Finance Act, 1994. Section 66D of the Finance Act contains a negative list of services and clause (l) thereof reads as under:

“services by way of –

(i) pre-school education and education upto higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;

(iii) education as a part of an approved vocational education course;”

Further section 93(1) of the Finance Act, 1994, enables the Government to exempt generally or subject to such conditions taxable service of specified description. By virtue of the said power, Government has issued a notification No.25/2012-ST dated 20th June, 2012, exempting certain services. Sl.no.9 thereof reads as follows:

“Services provided to an educational institution in respect of education exempted from service tax, by way of,-

(a) auxiliary educational services; or

(b) renting of immovable property;”.

As defined in the said notification, "auxiliary educational services" means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge–enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution.

3. By virtue of the entry in the negative list and by virtue of the portion of the exemption notification, it will be clear that all services relating to education are exempt from service tax. There are many services provided to an educational institution. These have been described as “auxiliary educational services” and they have been defined in the exemption notification. Such services provided to an educational institution are exempt from service tax. For example, if a school hires a bus from a transport operator in order to ferry students to and from school, the transport services provided by the transport operator to the school are exempt by virtue of the exemption notification.

4. In addition to the services mentioned in the definition of “auxiliary educational services”, other examples would be hostels, housekeeping, security services, canteen, etc.

5.Thus the apprehensions conveyed in the representations submitted by certain educational institutions and organizations have no basis whatsoever. These institutions and organizations are requested not to give credence to rumours or mischievous suggestions. If there is any doubt they are requested to approach the Chief Commissioner concerned.

6. All concerned are requested to acknowledge the receipt of this circular.

(J.M.Kennedy)
Director, TRU

 
 

www.centralexciseonline.com

 


www.taxolegal.com


Page copy protected against web site content infringement by Copyscape


www.customsindiaonline.com
Home | Mission | Contact Us | Acknowledgements © 2009 Copyrights, All Rights Reserved. 
Disclaimer Though all efforts have been made to reproduce the order and other contents correctly, the access and circulation is subject to the condition that EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone due to any mistake/error/omissions. The Site is constantly updated and any or all of the contents are liable to be modified, altered, deleted or replaced. EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone whether directly or indirectly  due to any modification , alteration, addition, deletion or replacement of any of the contents.

Copyright : Reproduction of news articles, photos, or any other content in whole or in part in any form or medium without express written permission of  EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is prohibited.Do not copy contents of this site . All pages are protected by COPYSCAPE. Plagiarism will be detected by COPYSCAPE.