05 February 2019
Dear All One of my clients has given his one building to a school for education purposes from 2013-14 . My questions are- 1. Is it taxable service for FY 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18 or not? 2. If it is taxable service , is there any abatement in relation of this service ?
06 February 2019
Initially same was covered in Negative List in 66D services by way of— (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; (m) services by way of renting of residential dwelling for use as residence;
Further vide Notification no. 25/2012, following insertion was made: Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-
(a) auxiliary educational services; or (b) renting of immovable property; and later on vide NOtification no. 06/2014 dated 11th July, 2014, it was amended as below; for entry 9, the following entry shall be substituted, namely:- “9. Services provided,- (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Government; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution;”;
So accordingly in FY 2013-14 and upto 11th July 2014, Same is exempted and thereafter Renting Services are taxable and there is no abatement on this particular service.
CAclubindia
