Service tax for educational institution

Service tax is payable if the total rent collection during the financial year exceeds Rs 10 lacs. It is no matter whether such rent is used for educational activity.

just check service tax Notification 25/2012 .It think renting by Education Institution is exempt.

As per the mega exemption notification: 9. 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; Therefore it is clear that renting by an educational institution is exempt.

The relevant portion of notification 25/2012 is reproduced below for reference:

9.    Services provided to or by an educational institution in respect of education     exempted from service tax, by way of,-

1. auxiliary educational services; or
2. renting of immovable property;

It could be observed that, services provided by an educational institution in respect of education is only exempt.  However, if it is for commercial purposes not relating to education, I doubt whether exemption could be availed.

Rgds,

CA Kanagaraj R

Please note that Entry No. 9 under NN. 25/2012 has been amended vide notification no. 3/2013 dated 1-3-2013. And the word " or by" has been removed. Therefore now modified text is as under:

9. 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;

Therefore, renting of immovable property by educational institution is TAXABLE.