Recently the service tax department is asking us to pay service tax on hostel fee received by the school during the period 1.4.2013 to 10.07.2014 by referring to the Notification where the word 'Provided By: is replaced to 'Provided to' on account Auxiliary Education Services.
They are taking the benefit of lacuna in the notification no. 3/2013-ST dated 1.3.2013 (W.e.f. 1.4.2013) where only services provided TO educational institution in relation to education remained exempted by way of auxiliary educational services.
Sir, please guide in this matter.
Thanks in Advance.
Service Tax Demand on Hostel Fees: Interpretation of 'Provided To' in Education Services Exemption, Entry No.9 Discussed A discussion on a forum addresses a query about the service tax department demanding payment of service tax on hostel fees received by a school from April 1, 2013, to July 10, 2014. This demand is based on a change in wording from 'provided by' to 'provided to' in a notification regarding auxiliary education services. The replies suggest that the department's interpretation might be correct, referencing entry No.9, which details exemptions for educational services, and clarifying that certain services provided to educational institutions remain exempt. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
