Exemption to Education Institute.

[S KUMAR]

Dear Sir,

whether the service provider (Proprietor) is eligible for service tax exemption as per Not No. 25/2012 who provides services of Security/detective service to deemed university/Pvt. University. The university is provide master and bachelor degree in (basically MCA,MBA, Medical degree).

[KASTURI SETHI]

Pl. inform period involved.

[S KUMAR]

2014-15 to 2017-18(upto June-17).

[KASTURI SETHI]

No exemption available. Read Notification No. 25/12-ST dated 20.6.12 (Entry No.9 ) as amended vide following Notifications.

See Notification No.6/14-ST dated 11.7.14 (Para No.1(iii) & 2(b)

Notification No.9/16-ST dated 1.3.16 (effective from 1.4.16)

“9. Services 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 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;”;

(oa) “educational institution” means an institution providing services by way of :

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course;”;

[Notification No. 10/2017-S.T., dated 8-3-2017]

[KASTURI SETHI]

In this case, the question, "What is an educational institution ?" is very much crucial. The whole issue revolves around this answer. You are to examine with the help of parameters mentioned in the above notifications conjointly and not in isolation. Also read notifications of reverse charge mechanism.

[S KUMAR]

Thanks a lot sir

AI Summary

Service tax exemption for security services to educational institutions depends on whether recipient qualifies as educational institution. Qualification for exemption of security services depends on whether the recipient qualifies as an educational institution under the notifications; exemptions apply where the institution provides covered levels of education or recognised qualifications, otherwise security services to such institutions are not exempt and reverse charge and notification amendments must be considered.