Applicability Service Tax for Construction of Eductional institution

[Guest]

Dear Sirs/Mam,

Kindly clarify Service tax exemption for Construction of Educational Institution with reference of Notification/Case laws.

Best Regards,

Siva.R

[YAGAY andSUN]

There is not such exemption notification pertaining to an Educational Institution.  However, applicability of service tax on construction of Educational Institution will be dependent on that whehter the activities of this Educational Institution will be the commercial activities or not?

[NEERAJ KUMAR, RANCHI]

Dear Siva,

As Mr Khatri has rightly said if the purpose of the construction of the educational institution is commercial, it will definitely attract service tax otherwise, not.

 

[Guest]

Dear Mr.Kumar,

 

Thanks for your reply! could you pls refer the notification for the exemption for the same.

 

Best Regards,

Siva.R

[Dhanpati Shah]

Dear All,

 

How to establish an institution is a commercial or not? whether fees charged or the objects of the institution will decide its nature?

AI Summary

Service tax applicability on construction of educational institutions depends on commercial nature; no general exemption notification exists. Service tax is not categorically exempted for construction of educational institutions; applicability depends on whether the institution's activities are commercial in nature. If the construction serves a commercial purpose it is likely taxable, whereas non-commercial purposes may fall outside service tax. Determining commercial character requires examining factors such as fees charged and the institution's stated objects.