28 January 2014
i have a client who runs a engineering college's canteen , he has
contracted with an college to run college canteen and
hostel canteen on rent is charged for running college
canteen and he entitled to earn all profits
arising from sale from college canteen . but for hostel
canteen he get a fixed amount per
month per student by the management , is service tax
levieble on such services provided by him as contractor
being an individual , also whether tds u /s 194c is liable to
be deducted .
28 January 2014
By virtue of the entry in the negative list and by virtue of the portion of the exemption notification, it will be clear that all services relating to education are exempt from service tax. There are many services provided to an educational institution. These including canteen services have been described as “auxiliary educational services” and they have been defined in the exemption notification. TDS provisions of IT Act, however would apply.
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