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Serice tax for educational institution/colleges

cavaradharajan (CA FINAL) (59 Points)

30 July 2016

Educational Institution is a Receiver services of Civil construction contract and Erection ,commissioning and Installation works.What is the rate of Services tax rate applicable? any abatement is there?

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4 Replies

Trilochan mohapatra (----) (249 Points)
Replied 30 July 2016

For construction service, RCM is not applicable. Hence there is no service tax liability for edu. inst.

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K.RAJA (Tax Consultant) (217 Points)
Replied 30 July 2016

Varatharajan sir,

By the way of construction of a structure meant for Educational is exemption up to 31.03.2015 and now this exemption is withdrawn with effect from 01.04.2015. The under mentioned services are only exemption from service tax by the educational institutions under the serial No: 9 of the Notification No: 25/2012-ST dated 11.07.2012 as amended by Notification No.06/2014 dated 11.07.2014.,

1. Transport of students, staffs and faculties

2. Catering services including mid-day meals scheme sponsored by the Government

3. Security or cleaning and house keeping services in such educational institution

4. Service related to admission or conduct examination

so my opinion is construction works to educational institution are applicable to Service Tax & its coming under the Works contract & applicable abatement if original works is 70% w.e.f.01.06.2015.

Trilochan mohapatra (----) (249 Points)
Replied 01 August 2016

K.RAJA sir what you have inerpreted is correct. But the question is about the tax liability for education inst. and not for construction company. What you have said is for construction company.