Auxiliary educational service.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2015 Whether an educational institution is liable for service tax on Auxiliary Educational Service on account of transportation of students, faculty and staff, which was taxable wef 01.04.2013 to 11.07.2014.
(vide Notification No. 3/2013 ST dated 1.3.13 and Notification No. 6/2014 dated 11.7.2014.

The schools have its own buses and it is not using services of ant third party for transportaion of students and its staff.?

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2015 please any one expert in service tax reply to me as the department is forcing the institution to pay service tax.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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15 July 2024 Educational institutions providing transportation services to students, faculty, and staff have specific considerations regarding liability for service tax. Here’s a breakdown of the relevant aspects:

### Applicability of Service Tax:

1. **Notification No. 3/2013 ST (Effective from 01.04.2013)**:
- According to this notification, services provided by educational institutions to its students, faculty, and staff in relation to transportation by buses owned by such institutions are exempt from service tax. This exemption covers transportation directly provided by the educational institution itself.

2. **Notification No. 6/2014 (Effective till 11.07.2014)**:
- This notification further clarifies and continues the exemption under Notification No. 3/2013 ST, maintaining that services provided by educational institutions through transportation owned by them are exempt from service tax.

### Conditions for Exemption:

- The exemption applies specifically to transportation services provided directly by the educational institution using its own buses.
- It excludes services provided by third-party operators or contractors.

### Conclusion:

Based on the notifications mentioned:

- **Educational institutions**, such as schools with their own buses for transporting students, faculty, and staff, are **exempt from service tax** under the conditions specified in Notification No. 3/2013 ST and Notification No. 6/2014. This exemption applies as long as the transportation services are provided using buses owned by the institution itself.

- Since the schools in question have their own buses and do not use the services of third-party operators for transportation, they fall within the scope of the exemption from service tax on auxiliary educational services related to transportation.

Therefore, the educational institution in your case should not be liable for service tax on the transportation of students, faculty, and staff during the period covered by the notifications (01.04.2013 to 11.07.2014), provided they meet the conditions stated in the notifications. Always ensure to review the latest notifications or seek advice from a tax consultant or legal expert for specific compliance requirements and updates.

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