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)

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 online

Aashok Kumar Sharma

(Expert)

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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