Educational Services Exempt from Service Tax Under Finance Act 1994, Section 66D; Government Clarifies Misunderstandings.
Various educational institutions and associations have sought clarification on the imposition of service tax on services related to the education sector. Under the Finance Act, 1994, services related to education are exempt from service tax, as outlined in Section 66D and a notification issued in 2012. These exemptions cover auxiliary educational services, such as student transportation, catering, and other outsourced services. The government reassures that the apprehensions raised by these institutions are unfounded and advises them to consult the Chief Commissioner for any doubts, dismissing rumors or misleading information.