Service tax on construction of university building

This query is : Resolved

govind (Querist)
Follow

19 October 2011 whether contractor is liable to pay service tax on construction of university building which is used for educational purposes

U S Sharma

U S Sharma (Expert)
Follow

20 October 2011 no exemption for university building, so contractor has to pay

govind

govind (Querist)
Follow

20 October 2011 more clerifications

rajula gurva reddy

rajula gurva reddy (Expert)
Follow

21 October 2011 University being government wing, the construction of university building is exempted from payment of Service TAx

govind

govind (Querist)
Follow

26 October 2011 MORE REPLIES EXPECTED TO CLEAR THE MATTER

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

24 July 2025 Regarding **service tax on construction of university building used for educational purposes**:

---

### Key points:

1. **Construction services are taxable under service tax** law unless specifically exempted.

2. However, there is a **specific exemption** under service tax for construction of buildings meant for educational purposes by certain institutions.

---

### Relevant exemption:

* Construction services provided to **an educational institution** (defined under section 66E) are **exempt** from service tax **if the building is used for educational purposes**.

* Educational institution generally means a school, college, university, or other institution providing educational services and recognized by government or competent authority.

---

### Conclusion:

* If the **contractor is constructing the university building for an educational institution**, and the building is **used for educational purposes**, then **service tax on construction is exempt**.

* If the university or building owner is a **private/commercial entity** and the building is not used strictly for educational purposes, service tax may apply.

---

### Summary:

| Situation | Service Tax Liability |
| ---------------------------------------------------------------------------------- | --------------------------- |
| University building constructed for educational institution and used for education | **Exempt from service tax** |
| Construction for commercial or non-educational purpose | Service tax applicable |

---

If you want, I can provide the relevant notification number or exemption clause details. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now