Educational Auxillary Services

[Gopalarathnam Muralidharan]

Dear Sir

One of my client runs educational training services which includes Engineering designing and drawing etc., Most of the courses being taught were either in relation to Engineering University's syllabus or even more than that.    Now the querry is whether conduct of such courses would come under Educatonal Auxillary services so as to claim exemption from payment of service tax.

[Madhukar N Hiregange]

The exemption under EAS is available when services are provided for the exempt educational institution. If offered privately then this exemption would not cover.

However one may examine the exclusion under the negative list 66D- education as a part of the curriculum for obtaining a qualification recognized under law. The question of whether it shouldbe provided by the educational institution itself is not clear. One could write under speed post seeking confirmation of the revenue on this.

[Mahir S]

Para 4.12.1 of the Education Guide in this regard is reproduced below for your guidance:

4.12.1 What is the meaning of 'education as a part of curriculum for obtaining a qualification recognized by law'?

It means that only such educational services are in the negative list as are related to delivery of education as 'a part' of the curriculum that has been prescribed for obtaining a qualification prescribed by law. It is important to understand that to be in the negative list the service should be delivered as part of curriculum. Conduct of degree courses by colleges, universities or institutions which lead grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification.

Hence, it appears that your case is not covered under the negative list and service tax is required to be paid.

AI Summary

Education as part of curriculum: private training not exempt from service tax; exemption limited to institution-delivered recognized qualifications. EAS exemption applies only when services are provided for an exempt educational institution; privately offered courses are not covered. The negative-list exclusion for 'education as a part of curriculum for obtaining a qualification recognized by law' requires delivery as part of a prescribed curriculum granting a recognized qualification, so private coaching or training not forming part of that curriculum is excluded and remains liable to service tax absent specific revenue confirmation.