Exemption from Payment of Tax - Education service

[V Rajalakshmi]

A taxable person develops software that will be useful to the schools for evaluating the answer sheet of students and providing a detailed analysis of the strengths and weaknesses of the student. I would like to know whether the supply of such software would get covered in the exemption Notification on 12/2017 or not. Apart from evaluating the answer sheet, the software is being used for other purposes like storing video classes and monitoring the performance of students. Pl, note that the software is used for the only class test not for tests conducted by the Board- Central or state.

AI Summary

Tax Exemption Denied for School Software Under Notification 12/2017 Due to Multipurpose Use Beyond Exams. A query was raised regarding the applicability of tax exemption under Notification 12/2017 for software developed to assist schools in evaluating student answer sheets and providing analysis. The software also stores video classes and monitors student performance but is not used for board exams. Responses indicated that the exemption does not apply as the software is multipurpose and not primarily for examinations. It was noted that the software supports various school functions and does not qualify as services related to admission or examination conduct by educational institutions. A reference to a Madras High Court judgment was suggested for further guidance.