Services Provided to Schools

[Srivatsan Krishnamachari]

Dear Experts,

Kindly provide clarity on the below issues

a) If an individual/HUF provides building to school for rent - will this attract Service Tax?

b) If an Institute/organisation providing services to school for improvement of additional skills/courses to the students - will this come under service tax net?.

Thanks to all in advance

Srinvias

[KASTURI SETHI]

Sh.S. Krishnamachari Ji,

 

Reply to both questions is as under:-

1. YES. Exemption withdrawn vide notification 6/14-ST dated dated 11.7.14.

2. Pl. let me know name of institution and name of course.

[Srivatsan Krishnamachari]

Dear Sir,

Their activity is basically, they conduct exams to the various class students to assess the students externally and give the feed back to the school and individuals and suggests for improvement in the subjects. This is a small institute located in Hyderabad

Thanking you

Srinivas

[DR.MARIAPPAN GOVINDARAJAN]

As opined by Shri Seth renting will attract service tax. In my view your second service will also attract service tax provided you have not crossed the threshold exemption.

[KASTURI SETHI]

Sh.Srinvias Ji,

Read your reply to second query. Second service is also taxable. If both services are being provided by one institution, then the value of services provided will be clubbed for the purpose of eligibility of threshold exemption limit of ₹ 10 lakhs. When any service provider crosses the value of taxable service of ₹ 9 lakhs, he is to apply for registration.

[Ganeshan Kalyani]

I do agree with the views submitted by Sri Mariappan Sir and Sri Kasturi Sir.

AI Summary

Service Tax Applies to Renting Buildings to Schools; Educational Services Taxable Beyond 10 Lakh Threshold. An individual inquired about the applicability of service tax on renting buildings to schools and providing additional educational services. Experts responded that renting buildings to schools is subject to service tax due to the withdrawal of an exemption in 2014. Additionally, providing educational services, such as conducting external assessments for students, is also taxable if the service provider exceeds the threshold exemption limit of 10 lakhs. It was advised that service providers register for service tax if their taxable services exceed 9 lakhs. The consensus among experts was that both services are taxable.