Service tax Educational institutions, Service Tax

[APPARAO CH]

Dear TMI team

I need to know about latest services tax on educational institutions (i.e Board Colleges / Institutions).

My daughter studying in Sr.Inter section in Private college in Hyderabad . Today I am going to college for payment of
Semester fee for my daughter . While make the payment in counter, he was saying in current year 2016-17 rule has coming from Indian govt, service tax will be deduct @15% on fee payment. I am not make the fee payment and I have seen in website for service tax rules/notifications for charge of service tax.

In service tax act on educational instt, service tax exempted on Schools/Colleges. Now, please clarify the above my issue at the earliest for further process of college fee payment,

Thanks

Apparao Ch

Hyderabad

Posts / Replies

[Gorantla Bhaskar Rao]

Dear Gentleman,

Presently, exemption is available to service provided :

a) by an educational institution to its students, faculty and staff ;

b) to an educational institution, by way of (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by Government ; (iii) Security or cleaning or house keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by such institution . In the light of the above, you ask the educational institution on what grounds they are charging the service tax to your child.