Service Tax can be paid on Rent to the Land Lord by a Educational Institution

[Janaki Ramam Vobbilisetty]

Dear Sir,

plz. clarify that it is required to pay service tax to the land lord on the play ground taken on rent by a Educational Institution ?. I seen that under Mega notification Educational Institutions are need not pay Service Tax on immovable property for the property taken as rent.

AI Summary

Educational Institutions Must Pay Service Tax on Renting Playgrounds, Not Exempt Under Notification No. 25/2012-ST. An educational institution inquired whether it must pay service tax on renting a playground from a landlord. According to Notification No. 25/2012-ST, services exempt from service tax for educational institutions include transportation, catering, security, cleaning, and services related to admissions or examinations. However, renting immovable property, such as a playground, does not fall under these exemptions. Both respondents confirmed that service tax is applicable to the rental transaction of the playground.