St on educational institution

This query is : Resolved

Emerson.C (Querist)
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25 March 2016 Dear Team, We had given an invoice with service tax to educational institution for training session. But we got the payment without ST. Pls give me the suggestion.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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25 March 2016 services provided to an educational institution are exempt from service tax. By virtue of the entry in the negative list and by virtue of the portion of the exemption notification, it will be clear that all services relating to education are exempt from service tax. There are many services provided to an educational institution. These have been described as “auxiliary educational services” and they have been defined in the exemption notification. Such services provided to an educational institution are exempt from service tax. For example, if a school hires a bus from a transport operator in order to ferry students to and from school, the transport services provided by the transport operator to the school are exempt by virtue of the exemption notification

Emerson.C

Emerson.C (Querist)
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25 March 2016 Thanks for the reply and in this case should we remove the service tax portion on invoice or what should be done pls help.

Emerson.C

Emerson.C (Querist)
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29 March 2016 I heard that recently the rules has been amended and notifying that the education institutions should pay service tax amount along with training payment. pls explain

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 If your training service qualifies as an auxiliary educational service or is provided to a recognized educational institution, it is exempt from Service Tax.

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