Service provided to educational institutes whether taxable

[Asked by 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

Taxability of construction services: non-profit educational-purpose building work is not taxable under commercial construction service.
Construction of buildings for organizations established solely for educational, religious, charitable, health, sanitation or philanthropic purposes and not for profit falls outside the scope of Commercial or Industrial Construction Service and is therefore not treated as a taxable commercial construction activity under the relevant service tax framework.