School providing hostel facility to students

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Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2016 Whether service Tax is applicable on hostel facility provided by school.?

Rupesh Jain

Rupesh Jain (Expert)
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31 May 2016 No service tax not applicable on the school.

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2016 WHAT IF THE DEPARTMENT HAS ISSUED A NOTICE TO SCHOOL TO FURNISH DETAILS OF HOSTEL FEE RECEIVED BY IT FOR THE PERIOD 1.4.2013 TO 10.7.2014.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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23 July 2025 Regarding **service tax on hostel facility provided by schools**, here’s the clarity:

### General Position:

* **Educational services by an institution** (school, college) that are **approved by the government and fall under the exemption list** are generally **exempt from service tax**.
* If the school is providing **hostel accommodation as part of the educational service**, then **hostel fees are also exempt from service tax**.

### However, regarding the notice to furnish details of hostel fee received (for 1.4.2013 to 10.7.2014):

* The department may be verifying whether the hostel facility is being treated as part of the **exempt educational service** or as a **separate taxable service**.
* If the hostel facility is provided to students enrolled in the school and is considered part of the educational service, then **no service tax is applicable**.
* But if the school is providing hostel accommodation separately (like to outsiders or not linked directly to the educational activity), it may attract service tax.

### Suggested Action:

* Provide the details asked by the department clearly showing that the hostel facility is **integral to the educational service** provided by the school.
* Attach proof that the institution is an **approved educational institution** and that the hostel fees form part of the fees charged for education.
* If possible, get legal or professional advice for specific case facts.

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If you want, I can help draft a response to the department or provide references to circulars/exemptions related to this. Would you like that?

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