Service tax
This query is : Resolved
04 May 2013
As per notification 25/2012 any services provided by way of auxiliary education service to or By an education Institution was exempt.
As per notification no 3/2013 any services provided TO education institution by way of auxiliary education service is exempt.
With regards to the above notification clarify the following:
Ms.xyz pvt ltd , Incorporated during apr-2012,provides service of Transportation facility to students and Faculty.
It has two kinds of receipts
1.It collects fee for the service directly from students.
2.It Collects fee from schools( By raising invoice in the name of School)
Please suggest on the taxability of Services rendered by the company and the period from which it is taxable.
As per notification no 3/2013 any services provided TO education institution by way of auxiliary education service is exempt.
With regards to the above notification clarify the following:
Ms.xyz pvt ltd , Incorporated during apr-2012,provides service of Transportation facility to students and Faculty.
It has two kinds of receipts
1.It collects fee for the service directly from students.
2.It Collects fee from schools( By raising invoice in the name of School)
Please suggest on the taxability of Services rendered by the company and the period from which it is taxable.
04 May 2013
see the 1st and last line of the paragraph, if u in hurry
“auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution.
hence transportation is covered, so no tax when provided to school,
though direct payment from students is not the facility provided to school, as it will cover in transportation of passengers, this is case of contract carriage hence not in negative list also this is the case of chartered bus/hired bus so again not exempt in mega exemption.
“auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution.
hence transportation is covered, so no tax when provided to school,
though direct payment from students is not the facility provided to school, as it will cover in transportation of passengers, this is case of contract carriage hence not in negative list also this is the case of chartered bus/hired bus so again not exempt in mega exemption.
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