Applicability of service tax

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BANDARI

CHARTERED ACCOUNTANT

61 Points Posted on 28 May 2013

Dear all,

we are entered into an agreement with Autonomous and deemed university established in 2008 under state govt act. we are providing the following services 1.Facilitating e-learning Programs 2. Employability skill development 3.Industry Interfacing initiatives it involves establishing of state of art facility to achieve excellence in course delivery mechanism, facilitation of single window industry strength programs and providing e-learning course ware for use by faculties and students in their classroom deliveries and any time self learning/assessment possibilities respectively please give me your valuable suggestions for the following issues 1). whether these services are exempted under the provisions of ST act as a services provided to the government or government bodies or 2).It will be considered as educational service to the university/students thank you for your response in advance.

Replies (3)

MAHESH GARG

PRACTICING CA

320 Points Posted on 28 May 2013

In my view, the services provided are not exempt.

Reason 1: Remember Services provided by Government or a local authority is exempt u/s. 66D (a) [Negative List] and not provided to.

Services provided to Government or local authority that are exempt by way of mega exemption are some construction services, services for carrying out functions generally entrusted to municipality.

Reason 2: Educational Services that are exempt u/s. 66D(l) are services by way of

i) Pre-School Education

ii) Education as a part of Curriculum for obtaining a qualification recognized by any law

ii) Education as part of an approved Vocational Education Course

In this case services provided by the autonomous university will be exempt but services provided by you i think is a kind of support services which cannot be exempt.

CA Mukesh Choudhari

xyz

169 Points Posted on 29 May 2013

Point 9 of mega exemption notification states that if service povided to or by an educational institute in respect of education EXEMPTED FROM SERVICE TAX By way of auxillary education services Yours case according to me is falling in these criteria..so it would be exempted You just go through point 9 of mega exemption notification..it wud make u a lot clearer.

Sumit Grover

Chartered Accountant

2575 Points Posted on 29 May 2013

Agreed wid Mr. mukesh... But one thing I would like to bring to your notice that.... The words "or by" have been deleted w.e.f. 1-apr-13... So read it as..." Provided to an educational institution... "