1. Educational service
1.1. Definition
relating to educational service:
‘Approved
vocational education courses’ (Section 65B(11
of Act) means (i) a course run by an industrial training institute or an
industrial training centre affiliated to the National Council for Vocational
Training or the State Council for Vocational Training offering courses in
designated trades notified under the Apprentices Act, 1961 ;or (ii) a Modular Employable Skill
Course, approved by the National Council of Vocational Training, run by a person
registered with the Directorate General of Employment and Training, Union
Ministry of Labour and Employment Finance act, 2013 has deleted following
courses from definition of approved vocational education courses:
(iii) a course run by an institute affiliated to the National
Skill Development Corporation set up by the Government of India
‘Auxiliary
educational services’: As per the mega exemption notification, auxiliary
educational services means any services relating to imparting any skill,
knowledge or 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 following services relating to:
·
admission to such institution
·
conduct of examination
·
catering for the students under any mid-day meals
scheme sponsored by Government
·
transportation of students, faculty or staff of such
institution.
Education as a part
of curriculum for obtaining a qualification recognized by law’: As per the mega exemption notification, it means that only such
educational services are in the negative list as are related to delivery of
education as ‘a part’ of the curriculum that has been prescribed for obtaining
a qualification prescribed by law. It is important to understand that to be in
the negative list the service should be delivered as part of curriculum. Conduct
of degree courses by colleges, universities or institutions which lead grant of
qualifications recognized by law would be covered.
1.2. Exemption
under negative list:
As per section 66D(l) of
the act, following services would be exempt provided by way of-
(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 recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;
1.3. Exemption
under mega exemption notification
Exemption under
mega exemption notification, 25/2012-ST dated 20.6.2012: As per entry no. 9 following services provided to an educational
institution in respect of education would be exempted from service tax:-
(a)
auxiliary educational services; or
(b)
renting of immovable property
Further, Services by way of training or coaching in
recreational activities relating to arts, culture or sports would be exempt
from service tax. (Entry no. 8)
1.4. Taxability
of services:
Vide Finance act, 2013, services provided by an educational institution
by way of auxiliary educational services or renting of immovable property would
not be exempt from service tax from 1st April, 2013.
As per Guidance notes on service tax issued by CBEC on 20th
June, 2012, following services relating to education would be taxable or exempt
from service tax:
·
Training given by private coaching institutes would not be covered as such training does not lead to grant of a
recognized qualification.
·
International schools: services provided by international schools giving certifications like IB
would also covered in this entry
·
Boarding schools: Boarding
schools provide service of education coupled with other services like providing
dwelling units for residence and food would be covered in this entry
irrespective of charges for education and lodging and boarding are separable or
inseparable.
·
Service to or by Educational institutions: services provided to or by an educational institution by way of,-(a)
auxiliary educational services; or (b) renting of immovable property, in
respect of education exempted from service tax.
·
Auxiliary educational services: The auxiliary educational services for all educational institutions are
not exempt. Exemption is available for services to or by educational
institutions in respect of education exempted from service tax. Therefore,
service tax is chargeable on such auxiliary educational services which are in
respect of education chargeable to service tax.
·
Foreign courses: To be covered in
the negative list a course should be recognized by an Indian law. Hence,
services provided by way of education as a part of a prescribed curriculum for
obtaining a qualification recognized by a law of a foreign country would not be
covered in the negative list entry.
·
Dual course - recognized and unrecognized courses: Course in a college which leads to dual qualification and only one of
which is recognized by law then valuation of such services would be determine
by applicable of by application of the rule of determination of taxability of a
service which is not bundled in the ordinary course of business contained in
section 66F of the Act it is liable to be treated as a course which attracts
the highest liability of service tax. However incidental auxiliary courses
provided by way of hobby classes or extra-curricular activities in furtherance
of overall well being will be an example of naturally bundled course.
·
Placement services: Placement
services provided to educational institutions for securing job placements for
the students would not be covered in this negative list entry.
·
Fees charged from employer for placement: Educational institutes such as IITs, IIMs charge a fee from prospective
employers like corporate houses/ MNCs, who come to the institutes for
recruiting candidates through campus interviews. Such services provided by such
institutions are taxable services.
Admission test fees:
Services of conducting admission tests for admission to colleges provided by
educational institution which are providing qualification recognized by law are
exempt from service tax.To join google group regular updates or
query on service tax send mail to handbookonservicetax@gmail.com
Whether the internet service availed by a college is exempted from paying service tax?
ReplyDeleteNo. It is liable to service tax as of now after amendments in this service.
DeleteNow there is only 4 specified services which if taken by educational body will be exempt from service tax. I.e.
1. Transport for student and staff
2. Catering
3. Security, house keeping and cleaning service in educational body
4. Service relating to admission to or conduct of exams.
Rest all taxable.. Even renting of immovable property to or by educational institution is taxable now..
And auxiliary service clause deleted.
The best part of pursuing any vocational course is that students and teachers are least bothered of plagiarism, but they can still use Plag Tracker.
ReplyDeletevocational training schools
I would like to say thanks for your sharing this useful information. Nice post keep it up. Hope to see you next post again soon.
ReplyDeleteWith Regards,
Vocational Colleges in Sydney | Vocational Courses in Sydney
This comment has been removed by the author.
ReplyDeleteWill the one year residential executive MBA programs by IIM be charged 14.5% service tax?
ReplyDeleteWill the one year residential executive MBA programs by IIM be charged 14.5% service tax?
ReplyDeleteMy wife runs a cookery class.Is service tax applicable to it?
ReplyDeleteWow… nice Blog Thank You For Sharing Information.
ReplyDeleteOverseas Educational Consultancy Services
Thanks...
ReplyDeleteCo working space in Bangalore Furnished office space in central Bangalore
synmac tax consultant in delhi
ReplyDeletedoing company registration in delhi,GST registration in delhi,Tax consultant in delhi..
if you have any requirement GST,ITR
synmac tax consultant in delhi
doing company registration in delhi,GST registration in delhi,Tax consultant in delhi..
if you have any requirement GST,ITR
click the below link...
company register in delhi
GST register in delhi
tax consultant in delhi
This is really attentiongrabbing, You're a very professional blogger. I have joined your rss feed and sit up for in search of extra of your fantastic post. @ Packers and Movers Ahmedabad
ReplyDeletePackers And Movers Surat
At Kingsbury Creations we have taken two well-loved stories and transformed them into exciting school musicals, perfect for junior schools and musical
ReplyDeletetheatre groups. Over the years these shows have proved so adaptable, they have been successful in a huge variety of productions all over the world from
KS2 primary school musicals to professional adult performances.
treasure island musical