Service tax on your opertor

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I have a query regarding applicablity of Service tax on tour operator providing services only to schools, colleges for taking students on various tours

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whether the tours are for educational purpose or it is for entertainment purpose?

ST is applicable whether tour for educational purpose or for entertainment purpose.

Under which section or notification it is applicable. please quote the section or notification no.

Originally posted by : DEEPAK
ST is applicable whether tour for educational purpose or for entertainment purpose.

Mr. Deepak,

 

  • Mega Exemption Notification i.e. 25/2012 (S.No.9) states that - Services provided to an Educational Institution in respect of education is exempted for service tax by way of Auxiliary Educational Services.
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  • Auxiliary Educational Services specificaly includes transportation of Students and Faculty.
  •  

So, i am completely disagree with your wordings.

Please let me know if i am wrong.

As per Finance Act(no. 2) 2014 only the following specified services will be exempted provided to an educational institution:

 

1. Transportation of students, faculty and staff of educational institution.

2. Catering service including any mid day meal scheme sponsored by the govt.

3. Security or cleaning  or house keeping services in such educational institution.

4. Services relating to admission to such institution or conduct of examination.

 

In my opinion, after reading the aboove 4 points it is very much clear that legislative intent is to exempt only those services which are in relation to education institution. Hence, in your case ST will be applicable.

 


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