Service tax on college canteen

This query is : Resolved

AZAR SHAIKH (Querist)
Follow

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 .

AVTAR SINGH

AVTAR SINGH (Expert)
Follow

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.