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“ Education under Negative List Regime”

                     

Negative List for Education

 

1.  Specified Service in negative list are

 

  • Pre-school education and education up to higher secondary school or equivalent, eg. CIE
     
  • Education as a part of a prescribed curriculum for obtaining a qualification recognized by “Indian”law for the time being in force
     
  • Approved vocational course by NCVT and  SCVT

 

2.  Other Services provided to educational institutes are taxable unless exempted specifically.

 

Exemptions till 10-07-14

 

Following services provided “to” or “by”(w.e.f 01-04-2013) an “education institution in respect of education exempted from service tax” by way of:

 

1.  “Auxiliary educational services”:

 

  • Any services relating to imparting any skill, knowledge or education, or
     
  • Development of course content, or
     
  • Any other knowledge – enhancement activity, whether for the students or the faculty, or
     
  • Any other services which educational institutions ordinarily carry out
    themselves but may
    “obtain as outsourced services” from any other person,
     
  • Includes following services relating to:

    •  Admission to such institution
       
    • Conduct of examination
       
    • Catering for the students under any mid-day meals scheme sponsored by Government
       
    • Transportation” of students, faculty or staff of such institution.

 

2.  Renting of immovable property

 

Exemptions w.e.f. 11-07-14

 

Concept of auxiliary education services deleted and scope of exemption redefined to exclude the following:

 

  • Services provided by an educational institution to its students, faculty and staff
     

  • Service provided to an educational institution, by way of,-
     

    • Transportation of students, faculty and staff

    • catering, including any mid-day meals scheme sponsored by the Government

    • security or cleaning or house-keeping services performed in such educational institution

 

  • Impact: Conducting entrance and admission tests, providing places and faculty for examination, renting of property to education institutions taxable

 

Miscellaneous

 

  • If the charges for education and boarding are inseparable then Boarding fees is excluded from purview of tax as dominant nature of service is education
     
  • Dual qualification courses by colleges: Recognized out of purview of tax and other taxable.
     
  • Private tutors / Placement services are taxable

     
  • Training or coaching in “recreational activities” relating to “arts, culture or sports” is specifically exempted u/n 25-2012

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