service tax on transportation services provided to its students by a Higher Secondary school

[Sanjeev Agrawal]

Whether the above service shall be covered under negative list being part of bundled service of education when separate fees is charged for transportation.

[A Wilson]

 Dear Sir,

No Service tax on Transportation services provided by school to students; You may refer the following:

Mega  Exemption Notification 25/2012 - Dated 20-6-2012

9. Services ³[provided to] an educational institution in respect of education exempted from service tax, by way of,-

    (a)  auxiliary educational services; or

    (b)  renting of immovable property;

Taxation of Services an Education Guide by CBEC

4.12.6 What are auxiliary educational services?

Auxiliary educational services are defined in the mega notification. In term of the definition, the following activities are 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, including 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.

Thanks & Regards,

A.Wilson

AI Summary

School Transportation Services Exempt from Service Tax Under Mega Exemption Notification 25/2012, Including Student Transport Fees. A discussion forum addressed whether transportation services provided by a higher secondary school to its students are subject to service tax, especially when separate fees are charged. A respondent clarified that these services are exempt from service tax under the Mega Exemption Notification 25/2012, dated 20-6-2012. The exemption applies to services provided to educational institutions in relation to education, including auxiliary educational services like student transportation. The response referenced the CBEC's Taxation of Services Education Guide, which defines auxiliary educational services to include transportation of students, faculty, or staff.