04 July 2009
DearSir, today i have got a letter from iim lucknow stating that they r not exempted from service tax and we should quote for tender for construction of class room blocks considering the service tax is applicable.Is there any notification to support that govt affliated educatinal institutes r exempted from paying service tax on construction.
05 July 2009
The service is commercial construction - entity + usage of the building is important. The private schools maybe liable for ST on construction since they could be said to be used for industry or commerce. Profit motive. However if a philanthrophic orgainsation get a school made then there would be no liability.