Applicability of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014 A company is into Career guidance for students of class 9 to 12.This includes a comprehensive testing,evaluation and counselling for the students resulting with ultimate career choice options. This service is provided to schools and students are directly availing such service.

Whether service tax is applicable for such company.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 August 2014 yes only when the gross income from such activities exceeds rs 10 lakhs

Annu Agarwal

Annu Agarwal (Expert)
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26 August 2014 Service tax shall be payable on the same.
Reason :career guidance services are not auxiliary education services as per the new definition of "auxiliary education services" w.e.f 11.07.2014.
Please note that now only following are considered as auxiliary education service:
(i) Transportation of students,faculty of eligible educational institution
(ii) Catering services including mid day meal scheme sponsored by the Government
(iii) Security and cleaning services in such education institution
(iv) Services relating to admission to such institution or conduct of examination.
Therefore in respect of any services received by the educational institution only the SERVICES SPECIFIED ABOVE ARE EXEMPT.

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