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.

[Shilpi Jain]

No. exemption will not be applicable as it is not for examination.

[Shilpi Jain]

Also it is a multipurpose use software whose primary use is not for tests/exams.

[Amit Agrawal]

I agree with Ms. Shilpi Jain Mam.

It is essentially software developed for assistance in various functions performed by the the school and one of may such tools of assistance is 'evaluation of test/s conducted by the school'.

Development of such software cannot be called as "services relating to admission to, or conduct of examination by, the educational institution' per se.

These are strictly personal views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

Sh.V.Rajalakshmi Ji,

You can take a cue from the judgement of Madras High Court dated 12.4.22 reported as 2022 (6) TMI 584-Madras High Court displayed in TMI on 14.6.22.

AI Summary

Exemption for education services denied when software is multipurpose and not primarily used to conduct examinations. The software developed for schools is a multipurpose tool whose primary functions extend beyond conducting examinations; therefore its supply does not constitute services relating to admission to, or conduct of examination by, the educational institution and is not covered by the examination-related education-service exemption.