Login | Register Now | Contact Us   

CGST Act IGST Act UTGST Act GST (Compensation to the States) Act Addendum to the GST Rate Schedule - 03.06.2017 101st Constitution Amendment Act, 2016 Addendum to the GST Rate Schedule - 18.05.2017 GST Compensation Cess Rates Decided in the GST Council Meeting held on 18.05.2017 Chapter Wise Rate wise GST Schedule - 03.06.2017 Chapter wise GST Rate Schedule for Goods Decided in the GST Council Meeting held on 18.05.2017 Revised Threshold for Composition Scheme - 11.06.2017 IGST Exemptions Approved by the GST Council - 11.06.2017 GST Rates Approved by the GST Council - 11.06.2017 Service Tax Exemptions in GST IGST Exemption, Concession List - 03.06.2017 Composition - Rules Valuation Rules ITC - Rules Invoice, Debit & Credit Notes - Rules Payment - Rules Refund - Rules Registration - Rules Return- Rules Transition Rules Proposed CTD Document Accounts and Record Rules GST rate Schedule for Services Decisions Taken by the GST Council in the 16th Meeting - 11.06.2017 List of Services under Reverse Charge Classification Scheme for Services Under GST
Higher Education to be High-Priced
15 March, 2017 Ahmedabad :
Higher Education to be High-Priced

India holds an important place in the global education industry. Under various articles of the Indian Constitution, free and compulsory education is provided as a fundamental right to children. The Government always remains liberal when it comes to the Educational Sector. India has one of the largest higher education systems in the world. Education sector has seen a host of reforms and improved financial outlays in recent years that could possibly transform the country into a knowledge heaven.

Various government initiatives are being adopted to boost the growth and depth of education, the Government has given Service Tax Exemptions related to education by virtue of Entry No. 9 of Mega Exemption Notification No. 25/2012. As per entry No. 9(b) of the said notification, if following four services have been provided to an Educational Institution by any person the same are exempted. (i) Transportation of Students, Faculty, and Staff (ii) Catering including mid-day meal sponsored by government; (iii) Security or cleaning or housekeeping services and (iv) services relating to admission to or conduct of Examination by such institution. This exemption is limited to the “educational institution” which are (i) pre-school education and education up to 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.

However, by virtue of Notification No. 10/2017-ST, the Government has curtailed the above mentioned exemption available to an Educational Institution. As per the recent notification, with effect from 01.04.2017, the exemption given under entry no. 9(b) of the Notification, the exemption shall be available to an educational institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Thus, it means that the exemption shall not apply to services provided to any college/University providing degree courses beyond higher secondary level.

The services like transport, security, cleaning, housekeeping, etc. if provided to colleges or to institutes conducting higher studies then providers of such type of services shall charge service tax on their invoices with effect from 1.4.2017. It implies that cost of such services will go up by 15 percent. It will make a huge impact on the cost of an Education Institution as there is service of teaching is not taxable the costs will become burden to them which in turn will result in hike of fees.

In many states pre-college (higher secondary) and college is run by a single institution with common infrastructure. How to draw a line in such a scenario, what if a same faculty is teaching pre-college and college students, what if there is common accounting staff for pre-college and college, whether transporting such faculty, staff will attract service tax? The government has inserted unnecessary ambiguity in already complex Service Tax provisions.

It was announced in the Budget that because of the GST, no major changes are proposed in Indirect Tax regime, especially in Service Tax, however, within a month of the same Budget, this exemption has been withdrawn. Thus, one question arises in mind that, how much revenue will be generated by the Government by withdrawing the same exemption when GST is proposed to be enforced from 1st July, 2017. Is it beginning of a phase where the Government wants to tax even the basic facilities like an Education or it is an indicator that in GST all will be taxed.

istanbul sehirlerarasi nakliyat istanbul sehirler arasi nakliye istanbul evden eve nakliyat atasehir evden eve nakliyat istanbul evden eve nakliyat firmalari atasehir evden eve nakliyat ev eşyası depolama samandira nakliyat umraniye evden eve nakliyat atasehir nakliyat sariyer evden eve nakliyat

Courtesy: From the desk of Monish Bhalla, Founder, www.servicetaxonline.com
Related Contents




Page copy protected against web site content infringement by Copyscape

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. Mr Certify 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.