Service tax Educational institutions

[APPARAO CH]

Dear TMI team

I need to know about latest services tax on educational institutions (i.e Board Colleges / Institutions).

My daughter studying in Sr.Inter section in Private college in Hyderabad . Today I am going to college for payment of
Semester fee for my daughter . While make the payment in counter, he was saying in current year 2016-17 rule has coming from Indian govt, service tax will be deduct @15% on fee payment. I am not make the fee payment and I have seen in website for service tax rules/notifications for charge of service tax.

In service tax act on educational instt, service tax exempted on Schools/Colleges. Now, please clarify the above my issue at the earliest for further process of college fee payment,

Thanks

Apparao Ch

Hyderabad

[Mr Rao]

Dear Gentleman,

Presently, exemption is available to service provided :

a) by an educational institution to its students, faculty and staff ;

b) to an educational institution, by way of (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by Government ; (iii) Security or cleaning or house keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by such institution . In the light of the above, you ask the educational institution on what grounds they are charging the service tax to your child.

AI Summary

Exemption for educational services: colleges should not levy service tax on student fees absent valid legal grounds. Exemption applies to services provided by an educational institution to its students, faculty and staff, and to certain services provided to the institution, namely transportation of students/faculty/staff; catering including government mid day meals; security, cleaning and housekeeping; and services relating to admission or conduct of examinations. The parent should ask the college to state the legal grounds for charging service tax on the fee payment.