TaxTMI 
TaxTMI 
Now a days various educational institutions/schools enter into agreement with IT service providers for development of educational portal for providing information about day to day activities like attendance, report cards, cultural meet, about holidays to students/parents/staff. The information is also provided through SMSs. Whether the service is taxable. If yes, category under which it falls prior to 01.07.2012
Education management solution
28 Mar 2014 
2 Replies 
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Auxiliary educational services exempt: educational-institution portals and communication services not taxable, excluding commercial coaching services.
CBEC clarified that services classified as auxiliary educational services provided to recognized educational institutions-examples include transport, hostels, housekeeping, security, canteen and analogous campus support-are exempt from service tax. The exemption applies only when the recipient is an educational institute and does not extend to commercial coaching or training entities. A contemporaneous query asks whether, prior to the negative list regime, development of portals or software-based communication for schools might have been classifiable as information technology or software services for taxation. (AI Summary)
CBEC clarified that services classified as auxiliary educational services provided to recognized educational institutions-examples include transport, hostels, housekeeping, security, canteen and analogous campus support-are exempt from service tax. The exemption applies only when the recipient is an educational institute and does not extend to commercial coaching or training entities. A contemporaneous query asks whether, prior to the negative list regime, development of portals or software-based communication for schools might have been classifiable as information technology or software services for taxation. (AI Summary)