Service tax on educational serviice

This query is : Resolved

bhushan gupta (Querist)
Follow

06 July 2012 One educational society is affiliated to Kurukshetra university and Providing courses like BBA,MCA,BA,MBA etc. Whether fees collected from the students will be subjected to service tax. Please mention relevant clause of rules or section in support of answer. Thanks

Venkattaraman A

Venkattaraman A (Expert)
Follow

07 July 2012 Dear Bhushan Guptha

You hv not mentioned that the said society is registered under trust or Societies Registration Act.

I am herewith forwarding the latest notification for your kind perusal.

Notification 15/2012 - service tax
I (A)
(v) provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passenger or supply of manpower for any purpose or works contract by any individual, Hindu Undivided Family or proprietary firm or partnership firm, whether registered or not, including association of persons; located in the taxable territory to any company formed or registered under the Companies Act, 1956 (1 of 1956) or a business entity registered as body corporate located in the taxable territory;

As per I(A)(V) of the above notification 15/2012 - service tax, we understand that only if the service is rendered to any company formed or registered under the Companies Act, 1956 (1 of 1956) or a business entity registered as body corporate located in the taxable territory; the receiver of service is liable to pay service tax to the government.

In my opinion the Service Tax is not applicable to the Educational Institutions

Kaushik Vinod

Kaushik Vinod (Expert)
Follow

09 July 2012 I am not able to understand your answer for the said query,,,please clarify the same.

Venkattaraman A

Venkattaraman A (Expert)
Follow

09 July 2012 In my Opinion the Services Tax is not applicable to Educational Institution Run By Public charitable Trust.

Only Companies formed /registered under the Companies Act alone is liable to deduct the Service Tax payable by the vendors and directly remit to the authorities.

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