Does hostel facility provided by an educational institution(other than school) fall under the ambit of auxiliary services?if an educational institution (other than school) receives hostel fees from students, in such case does the institution is liable to pay service tax on such receipt?
With the advent of negative list approach all the servcices other than those specifically icluded in the Section 66D or come under the mega exemption notification no.25/2012 will come under the servcie tax net. Now the educations service (26D(l) is exempt and also the services by way of renting of residential dwelling for use as residence is exempted. Hostel fee collected from the students will not fall under any of the exempted categories and as such taxable.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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