Exemptions
Following educational services are exempt.
Following educational services are exempt.
- Pre school educational and education up to higher secondary school or equivalent
- Education as a part of curriculum for obtaining a qualification recognized by any law for the time being in force. Recognized by law meaning:It means recognized by any university (under UGC act) .If private centers recognized by university, the services will be exempt.In CCE vs. Tandem Integrated services , center provide coaching to students who appear for university examination.After completion of coaching , fees are shared with university. It has held that services will be exempt.
- Approved vocational educational course: Approved courses means courses run by an industrial training institute or an industrial training center affiliated to National council for vocational training.A course run by NSDC set up by the government will be subject to service tax. with effect from 10/5/2013.
- Transport services provided by school to students are exempt because it is naturally bundled service.
- services of training in the field of arts,culture or sports are exempt. as per Sr. no. 8 Notification No 25/2012.
International schools and boarding schools giving international certificate like IB up to HSC and boarding schools are also exempt.
Taxable services:
- Private coaching
- Placement services
- Postal coaching
- online coaching
Exemption to auxiliary services:
services provided
to an educational institutions by way of
- Auxiliary services
- Renting of immovable property services
are exempt from service tax.Sr no 9 of Notificaiton 25/2012
Following services are included in exempted services
- Renting of immovable property
- Outsources educational activities
- services related to admission of students
- mid day meals to students
- transport facilities to students or teachers
Note that renting of immovable property by educational institute is taxable with effect from 1/4/13.
Donations received by educational institution will not be form part for the value of taxable service. Likewise, if educational institute sales some books with provision of services, the value of sale should not be consider while calculating value of services.