30 June 2016
Hello Sir, As I know service provided by Public School are covered under negative list, but I want to know that whether service tax chargeable or not, if any public school recognized by state board, before or after curriculum hours provides tuition/coaching class for the subject choosen by the students and school charging excessive fee for such tuition Service. Now due to such scheme of tutorials service schools are doing unfair trade practice and also service tax evasion.
30 June 2016
school is exempt from service tax, its receipts if exceeds rs. 1000000/- lacs from their extra coaching then its attract the service tax. other wise not attract service tax.
21 July 2024
In India, services provided by public schools are generally covered under the negative list of services as per the Service Tax laws. However, there are specific considerations and exceptions related to coaching or tuition services provided by schools, including those recognized by state boards.
### Taxability of Coaching or Tuition Services by Schools:
1. **Negative List of Services:** - Services provided by an educational institution to its students, faculty, or staff are generally exempt from service tax if they are related to education itself. This includes services such as conducting educational programs, imparting skills or knowledge, and conducting examinations.
2. **Exception - Coaching or Tuition Classes:** - Coaching or tuition classes provided by educational institutions before or after regular curriculum hours are not explicitly covered under the negative list exemption. - Therefore, if a public school charges fees for providing additional coaching or tuition classes, especially if they are beyond the regular school hours and are not part of the core curriculum, such services may be liable for service tax.
3. **Unfair Trade Practices and Service Tax Evasion:** - If a public school is providing coaching or tuition services that are distinctly separate from regular academic education and charges a fee for these services, there could be implications for service tax compliance. - Charging excessive fees for such additional services could also raise concerns related to fair trade practices and consumer protection.
### Action Steps:
If you believe that a public school is engaged in providing taxable coaching or tuition services and evading service tax:
- **Check Service Tax Registration:** Verify if the school is registered under service tax for such services. - **Inform Authorities:** You can report suspected tax evasion or unfair trade practices to the concerned authorities, such as the Service Tax Department or the Consumer Protection Forum. - **Seek Clarification:** If in doubt, seek clarification from a tax consultant or legal expert who specializes in service tax matters to understand the specific tax implications and compliance requirements.
### Conclusion:
While educational services provided by public schools are generally exempt from service tax under the negative list, coaching or tuition services provided outside the regular curriculum hours may not fall under this exemption. If a public school charges fees for such additional services, it may be required to comply with service tax regulations unless specifically exempted under any other provisions.
For accurate advice tailored to your specific situation, consulting with a tax professional or legal advisor familiar with Indian service tax laws is recommended. They can provide guidance based on the latest regulations and help address concerns related to fair trade practices and tax compliance.
CAclubindia
