Auxiliary services (transportation, catering, security, cleaning and house-keeping and services relating to conduct of examination) in secondary schools would be made taxable from April 1, 2017

Auxiliary services (transportation, catering, security, cleaning and house-keeping and services relating to conduct of examination) in secondary schools would be made taxable from April 1, 2017 @ Notification has made it clear that from April 1 on wards tax exemption for auxiliary services would be limited to schools only

Service Tax Exemptions for Educational Institutions from 1st April 2017 @ Higher education fees all set to rise from April 1 

Indore  : Parents of college students have to pay more fees from April 1 as four services, which were so far exempted from service tax, would be made chargeable. But, schools providing these services won’t be asked to pay tax.

At present Indore boasts of city four universities, over 40 private and two govt engineering colleges, two premier institutes like IIT and IIM, over 20 private B-schools and two private medical colleges. A large number of students from nearby states also come to the city for higher education and the recent move would definitely put additional financial burden on them.

The Central Board of Excise and Customs has released a notification in this regard on March 8. According to the notification, auxiliary services in secondary schools would be made taxable from April 1, 2017.

Four services— transportation of students, faculty and staff; catering; security, cleaning and house-keeping and services relating to conduct of examination are currently free.

The notification has made it clear that from April 1 onwards tax exemption for above services would be limited to schools only.

4 services brought under service tax net

Tax consultants said that from April 1, these services provided by higher educational institutions undertaking graduate or post graduate courses and approved vocational courses would be taxed.

Almost all institutes and colleges offer these services at present.  Service vendors of institutes like law, management, accountancy, engineering, diplomas, medicine and universities offering various courses shall be taxed. However, the rate of service tax would vary.

PR Source | http://www.freepressjournal.in/indore/higher-education-fees-all-set-to-rise-from-april-1/1033460

CBEC ST Notification 8^th March 2017 | http://www.cbec.gov.in/resources//htdocs-servicetax/st-notifications/st-notifications-2017/st10-2017.pdf

Regards

Pralhad Jadhav

Senior Manager @ Knowledge Repository

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