service tax

Queries 444 views 1 replies

An university(autonomous) is paying thousands of rupees as service tax  to the various service provider of the university all these services are directly or indirectly are made to benefit of students of the university (either for security or computer or internet or other facilities).

                     my doubt is that as these services are not for the benefit of the university instead for the student who are going to be benefited from the services of the university. university in return does not charge service tax for the services they provide(library, hostel, locker,computer lab etc)

they charge fee for the above services which are collected at the time of admission

is there any provision that  university can claim the service tax which they pay to service provider or they can apply for any exemption under service tax act

till now all the service tax paid by them are either debited to P&L a/c or added to fixed asset depending upon service they get

 

please tell me what they are is correct or wrong 

Replies (1)

No dear.

In the case of service tax one can get benefit (set off) of service tax paid on availed service, only and only if they are liable to pay service tax on the service provided by them. Univercity is not liable to pay service tax  so they will not get benefit of set off, hence they can not apply for any exemption under service tax.


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