Service tax on Works contract service provided to Educational Institution

[Guest]

With due consideration to notification no.25/2012-Service Tax dated 20.6.2012 “Services provided to an educational institution in respect of education exempted from service tax, by way of,-(a) auxiliary educational services; or(b) renting of immovable property;' Further, the term auxiliary educational services defined in the said notification as 'any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge-enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Govt., or transportation of students, faculty or staff of such institution’'

So there was no exemption for work contract service provided to educational institutions from service tax?

please advise.

[Rajagopalan Ranganathan]

Sir,

There is no exemption for works contract service provided to Educational Institutions. According to Sl. No.9 (b) of Notification No. 25/2012-ST dated 20.6.2012 as amended "Services provided to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the 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.

alone is exempted.

educational Institution

[Guest]

thanks for the clarification sir.

[KASTURI SETHI]

Dear Querist You have read unamended notification. I support the views of Sh..Rangansthan Sir.

[Guest]

if we are providing works contract service to educational institute under government department,then service tax applicable?

[KASTURI SETHI]

Yes Applicable.

[Guest]

we have provided work contract service to college of engineering which is autonomous engineering institute affiliated to Pune University.

Now my confusion is as its an autonomous engineering institute, we can't say its controlled by state government?

2ndly, though work contract services provided to education institutes are not exempted from service tax but if the same is controlled by state/central government, service tax applicable?

please advise.

[KASTURI SETHI]

No exemption available. We have to take care of different notifications issued from time to time. Now no Exemption is available.

AI Summary

Service tax on works contract not covered by education exemptions; only specified auxiliary services qualify for relief. The exemption under Notification No.25/2012 covers only specific auxiliary educational services-transportation, catering including mid-day meals, security/cleaning/housekeeping, and admission or examination services-and does not extend to works contract services supplied to educational institutions; the autonomous status or university affiliation of an institution does not alter that limited scope unless a separate exemption is issued.