Notification no. 25/2012

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"A" is an educational institution (Medical college) and also has a hospital as a mandatory requirement that medical colleges should have a hospital. It is registered under the societies registration act and also an approved institution u/s 12AA and 10(23C)(vi) of the Income Tax Act, 1961 providing educational qualification recognized by law. As the notification no 25/2012, services provided to/by an educational institution is exempt from service tax liability. As far as "A" is concerned, educational service is the main service provided whereas medical service provided by the hospital are only ancillary in nature. But hospital charges at the same rate charged by other private hospitals and consequently the turnover of the hospital is more than the turnover from the educational institution. My question here is, are the services provided to "A" in relation to hospital activities exempt from service tax as per the above mentioned notification?


 

Replies (3)

The services provided by a educational institution are no longer exempt as per the latest ammendment vide Notification 3/2013-ST dated 01.03.2013

As per Notification no. 3/2013, the services provided 'to/by' is substitued by 'to'. Hence the services provided to an educational institutions are still exempt from service tax. Please clarify the same and answer my earlier question with regard to the above mentioned circumstances.

The education services provided by 'A' as a part of curriculam for obtaining a qualification recognised by any law is non-taxable as is covered under Negative List 66D(l)(ii).

The health care services are exempted under N/N-25/2012 vide entry no. 2.

The changes effected by N/N-3/2013-ST is not relevant as the same is for auxilary education services. Also, registration u/s 12AA is also not relevant as the same is relevant for charitable activity only.


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