20 September 2013
When educational Institutions are exempted from the chargeability of service tax , than why coaching Institutions charge Service Tax ?
20 September 2013
services by way of— (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course are exempted as they are listed in he negative list under section 66D (l). The above said service does not include service by coaching institute and therefore the service provided by such coaching institution are not in negative list and therefore taxable.
But, The words "educational institute" include coaching classes and therefore services provided by such educational institution in respect of education exempted from service tax, by way of,-
(a) auxiliary educational services; or
(b) renting of immovable property;
were exempted under notification No. 25/2012 till 01.03.2013.
w.e.f. 01.03.2013 by amending Notification No. 25/2012 ibid (by Notification No. 3/2013)the exemption to the educational institution for providing service in respect to education has been removed.
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