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Service tax on hostel facility provided by educational inst.

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 November 2018 The service Tax (Now CGST) Department had issued notice to an Educational Institution and levied service tax demand on Hostel fee charged from students under the head
"Auxiliary Education Service - Providing Boarding (Hostel) facilities to students, faculty /staff for the period 01-04-2013 to 11-07-2014 in terms of Notification No. 3/2013-ST dated 01-03-2013 by amendment made in Serial No.9 of Notification 25/2012-ST. (the words "provided to or by" educational institution were replaced by the words "provided to" in the serial no. 9 of Notification 25/2013-ST dated 20.06.2012.

Please guide in the matter and suggest the suitable reply so as to avoid the service tax demand to school (which runs upto 12th standard students)

Thanks in Advance.



01 November 2018 INTENTION OF LAW – The intention of the Law was always to exempt the Education Service and the Government of India has never intended to charge Service Tax from the Students (or their Parents) for Services that are integral to Education like Boarding (Hostel) Fees or Transportation Fees. In this context only the government has even granted exemption to the service received by the Education Institutions by outsourcing the same to other persons at Entry No. 9 of Notification No. 25/2012 for the period from 01-04-2013 to 10-07-2014.

It could be easily understood that if a Service received by an Education Institution from a Third Party (Outsourced) is exempted from Service Tax, then the intention of law is very clear and the same service cannot be treated as Taxable when it is provided by the Education Institute directly to its Students.

01 November 2018 See the link
http://blog.ritulpatwa.com/service-tax-auxiliary-education-service-01-04-2013-to-10-07-2014/




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Querist : Anonymous

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Querist : Anonymous (Querist)
08 June 2019 Dear Sir,

Now the department has passed the order and charged service tax + penalty + interest + non registration + non filing of return from the school on hostel fee received for the period 1-4-2013 to 10-7-2014, saying that you may go to appeal, we have received the order from seniors.

Now how to defend the case, as the demand is heavy and the students from whom hostel fees was received for that period have mostly left the school.

Please guide me.

Thanks in Advance

09 June 2019 INTENTION OF LAW – The intention of the Law was always to exempt the Education Service and the Government of India has never intended to charge Service Tax from the Students (or their Parents) for Services that are integral to Education like Boarding (Hostel) Fees or Transportation Fees. In this context only the government has even granted exemption to the service received by the Education Institutions by outsourcing the same to other persons at Entry No. 9 of Notification No. 25/2012 for the period from 01-04-2013 to 10-07-2014.

It could be easily understood that if a Service received by an Education Institution from a Third Party (Outsourced) is exempted from Service Tax, then the intention of law is very clear and the same service cannot be treated as Taxable when it is provided by the Education Institute directly to its Students.

Go for appeal you will win the case.

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 June 2019 Sir,

The school is not registered with the service tax but now we have to file the appeal and fore this we need to deposit 7.5% of demand as pre deposit.
So whether we have to obtain registration and then deposit the amount or there are other ways to deposit the 7.5% of demand and file the appeal without getting it registered.


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Querist : Anonymous

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Querist : Anonymous (Querist)
22 July 2019 Sir, I need to file appeal against the service tax levied on hostel fee received by the school. I need to deposit 7.5% of duty demanded and submit the challan along with ST-4. But since the school is not registered under service tax or gst, How can i deposit the 7.5% as mandatory pre-deposit . . ?




22 July 2019 It is necessary to have a valid registration number from the Central Excise/Service Tax Department for making any payment. If you are not a regular assesse with the department but needs to effect e-payment, you can obtain registration as "Non-assessee" by logging into http://www.aces.gov.in and choosing the option "CENTRAL EXCISE" or "SERVICE TAX"






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