Service tax on construction of university building
This query is : Resolved
19 October 2011
whether contractor is liable to pay service tax on construction of university building which is used for educational purposes
20 October 2011
no exemption for university building, so contractor has to pay
21 October 2011
University being government wing, the construction of university building is exempted from payment of Service TAx
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?
---
### 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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Notice from IT DEPTT IF FD AMOUNT EXCEEDS 10 LACS
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- Regarding TDS not deducted on rent
- Tax audit & Switching from Presumptive taxation
- Which SAC code should be selected??
- PRODUCT AND SERVICE CATEGORY CODE
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- GSTR9- ITC
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
