28 March 2019
The service tax department is taxing an educational institute (senior secondary school) for the Hostel (Boarding) facility provided BY the school to its students for the period 1-4-2013 to 11-7-2014 under the head “Auxiliary Education Service” on the basis of Notification 3/2013 dated 1-3-2013.
But the department had exempted the transportation service provided BY the education institute on the basis of some decided case law. But they are not exempting the hostel service provided BY the school for the period 1-4-13 to 11-7-14 in the absence of any clear notification or decided case law.
The hostel boarding charges are also well below 1000/- per day and the school is also up to 12th standard.
There should be same justification as in case of transportation service to exempt the Boarding (Hostel) facility provided by the school but he department is demanding service tax along with interest and penalty.
My query is whether there is any judgement on this matter or any notification in this regard so as to fight with the department?
23 April 2019
Is there any case law or clarification from the department that Hostel (Boarding) Facilities provided by the school is not liable to service tax.
Department is taking advantage of no case laws or clarification in this matter.
They are issuing show cause notices and demanding tax interest and penalty for the period 1-4-2013 to 10-7-2014 as auxiliary education services provided BY the school.
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