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Service tax exemption to educational istitutions

Priyanka Kandwal (finance & Accounts) (58 Points)

12 November 2013

Dear All,

My company is providing a building on rent to an Educational Body. Whether we need to charge service tax on the rent invoice.

Thanks in Advance!!

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5 Replies

CA. Narottam Kumar Rawat (Indirect Tax Consultant) (394 Points)
Replied 13 November 2013

Dear Priyanka, Renting of immovable property to educational institution is exempt from service tax :)

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Priyanka Kandwal (finance & Accounts) (58 Points)
Replied 14 November 2013

Dear Narottamji Actually I have a doubt in Section 66D (ii) which says --Services by way of Education as a part of Curriculum for obtaining a qualification recognized by any law for the time being in force is exempted from levy of Service Tax. What does recognised by any law means here? Moreover there is a recent judgement of Delhi HC [Indian Institute of Aircraft Engineering v Union Of India & Ors (2013-TIOL-430-HC-DEL-ST)] which says educational qualification recognized by law will not cease to be recognized by law merely because for practicing in the field to which the qualification relates, a further examination held by a body regulating that field of practice is to be taken. The Institute to which we are giving the building on rent is providing MBA BBA.

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 14 November 2013

Dear Priyanka, Kindly refer to Para 9(b) of N/N-25/2012 as amended, which exempts renting of immovable property as above. 9. 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; This exemption has nothing to do with services included in the Negative List u/s 66D.

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