Service provided to educational institutes whether taxable

[Guest]

My client is a works contractor, and providing construction service to an educational institute, can someone kindly say whether that service is taxable.

[rishi mohan]

Construction of Buildings for the purpose of educational, religious, charitable, health, sanitation or Philanthropic purpose & not for the purpose of profit not covered under Commercial or Industrial Construction Service.

Such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthropic purposes and not for the purposes of profit are not taxable, being non-commercial in nature.

You may refer Point no. 13 of  the circular no. Letter F. No. B2/8/2004-TRU, dated 10-9-2004.

Please follow the link for the circular https://www.taxtmi.com/circulars?id=161

AI Summary

Construction Services for Non-Profit Educational Buildings Exempt from Tax Under Specific Circular A works contractor inquired whether construction services provided to an educational institute are taxable. The response clarified that construction services for buildings used solely for educational, religious, charitable, health, sanitation, or philanthropic purposes, and not for profit, are not taxable. This is because such activities are considered non-commercial. The reference was made to a specific circular, indicating these services fall outside the scope of Commercial or Industrial Construction Service.