Sir,
Whether educational Institutions ( Trust) fall under the Category of Business Entity? I want an answer for this to decide whether reverse charge mechanism is applicabe to educational sector.
Thanking you
CA.A.Jospeh Amul Raj
Menu
Business entity under service tax
Replies (1)
Sir,
As per section 65B(17) buiness entity means " any person ordinarily carriying out any activity relating to industry, commerce or any other business or profession". Hence educational institution are not covered under reverse charge mechanism for the following services
- Legal services
- Services provided by government
- Hiring of motor vehicle
- Supply of manpower
- Works contract services
However, if educational institutions receive services from GTA and sponsorship then reverse charge is applicable to them. This rule applies even if educational instituion is registered as company registered under section 25 of Companies Act 1956.
CA Saravanakumar G
Madurai
Recent Topic
- Return filing for intervening period upto date of
- EPF Withdrawal taxation
- While e filing otp not generating
- INCOME FROM CLOSING OF NSS -1992 -EXEMPT UNDER W
- GPF AND COMMUTED PENSION RECEIVED
- How do I choose the correct trademark class? Can I
- Error in totalling salary amount in AIS
- Client consent under DPDPA: Is client sharing PAN,
- TDS MISMATCH
- Rebate on other income even if LTCG is above my 12
Related Topics
CAclubindia
