My client is a works contractor, and providing construction service to an educational institute, can someone kindly say whether that service is taxable.
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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 http://www.taxmanagementindia.com/visitor/detail_circular.asp?ID=161