Presently the following services are exempt from service tax as per entry no 9 of the Mega Exemption Notification 25/2012.
Services provided :-
(a) by an Educational Institution to its students, Faculty, and Staff.
(b) by any person to an Educational Institution, by way of
(i) transportation of students, faculty and Staff.
(ii) Catering, or cleaning or house keeping services performed in such educational institution.
( iii) Services relating to admission to , or conduct of examination by, such institution.
The notification 25/2012 defines Educational Institution as an Institution providing services by way of :
(i) pre- school education and education up to higher secondary school or equivalent.
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force.
(iii) education as a part of an approved vocational education course.
The new notification No 10/2017- ST dated 08.03.2017 has been issued to curtail the exemption granted earlier to few specific services provided to educational institutions. The notification provides that nothing in clause (b) of entry no 9 of mega exemption notification 25/2012 shall apply to an educational institution other than an institution providing service by way of pre-school education and education up to higher secondary school or equivalent. The amendment is effect from April 1st 2017.
In effect the following services provided to educational institution other than an institution providing service by way of pre-school education and education up to higher secondary school or equivalent, which were till now were exempt will be taxable to service tax with effect from April 1st 2017.
(b) by any person to an Educational Institution, by way of
( i) transportation of students, faculty and Staff.
(ii) Catering, or cleaning or house keeping services performed in such educational institution.
( iii) Services relating to admission to , or conduct of examination by, such institution.
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