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

Auxiliary educational services exemption: student transportation supplied for education is not subject to service tax. Transportation of students provided by a school falls within the Mega Exemption Notification's definition of auxiliary educational services and is exempt from service tax where it is provided in respect of education, including when outsourced or charged separately.