Service Tax Exemption on services provided to Educational institutions is withdrawn

 

Services such as transportation, catering, security, cleaning or house-keeping, admission or conduct of examination, etc., provided to educational institutions are exempt from service tax till 31st March 2017

From 1st April, 2017 except services to pre-school education and education up to higher secondary school or equivalent will attract service tax. For example, if security service is provided to engineering college, it will be subject to service tax. (notification No.10/2017 dated 8th March 2017).

 

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

NOTIFICATION

No. 10/2017-Service Tax,

New Delhi, the 8th March, 2017

GSR(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012- Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

In the said notification, in the opening paragraph, in entry 9, in clause (b), after sub-clause (iv), the following proviso shall be inserted, namely:-

“Provided that nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent;”.

  1. This notification shall come into force on the 1st day of April, 2017.

[F. No.334/7/2017 -TRU]

(Anurag Sehgal)

Under Secretary to the Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary vide notification No. 25/2012 – Service Tax, dated the 20th June, 2012 vide number G.S.R. 467 (E), dated the 20th June, 2012 and last amended vide notification No.7/2017 – Service Tax, dated the 2nd February, 2017 vide number G.S.R. 100(E), dated the 2nd February, 2017.

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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 25+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional and Registered Valuer (F&SA).Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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Maria Smith
2022 years ago

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