Whether service tax is leviable on services provided by educational institution other than "ordinary course of services"

[samiuddin ansari]

Respected Sir,

With due respect, I may kindly be guided as I have some doubts on the point of exemption granted to education institutions as per sr. no.09 of mega exemption Notification No.28/2012-S.T dated 20.06.2012 as amended whereunder it has provided that any ordinary services provided to educational institutions are exempted.Sir, my friend is a registered architect and having service tax registration and he has recently provided taxable services related to designing, planning, construction etc. to educational institution i.e. private school for a building of one more additional storey to the school building due to increase in the strength of students. The Service Tax Department is asking for service tax on such services provided to education institute. My question is whether he is liable to pay the tax liability of such services. If he is not liable to pay, kindly provide some reference for guidance.

With regards,

S.N.Ansari.

AI Summary

Services to educational institutions outside listed exemptions are taxable, including architectural services provided to schools.
Services to educational institutions are exempt only when they fall within the specific listed categories (services by the institution to its students, faculty and staff; and specified services to the institution such as transportation, catering, security, cleaning/housekeeping, and services relating to admission or examinations). Architectural services for design, planning or construction are not listed and therefore are taxable, payable by the service provider under the forward charge, except for any small service provider relief.