Maintenance service to schools

Originally posted by : Lydia
	Is maintenance service provided to school exempt from service tax? Is it covered under auxiliary services as given in the act

Dear Madam, As per serial no. 9 of amended mega exemption notification,"Services provided to an educational institution in respect of education exempted from service tax, by way of,-

(a)  auxiliary educational services; or

(b)  renting of immovable property;”

Thus, as per above exemption only the auxiliary educational services or renting of immovable property will be exempted only if these are PROVIDED TO educational institution which is providing exempted services. Thus, w.e.f. 1.4.2013, if the educational institution is service recipient of auxiliary educational services or renting of immovable property services, then only, the exemption will be applicable.

Where "Auxiliary Educational Service" means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination,catering for the students under any mid-day meals scheme sponsored by Government , or transportation of students, faculty or staff of such institution.

Therefore, as per the above provisions maintenence service provided to an educational institute is not exempt.

The company has provided maintenace work to school such as contruction of play ground, extention of floor, etc. Service tax has not been levied on the above service on the assumption tha it is exempted. Is the above treatment correct? should the company pay service tax?

As per my view exemption is not available.