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Taxability of rental income received from educational societies

01 December 2016

an individual received rental income from educational societies whether the same is taxable under service tax provisions or not please provide information in this regard

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8 Replies

Abhishek (Student CA IPC / IPCC) (143 Points)
Replied 02 December 2016

ST is not chargeable on service provided to any educational instituion by way of renting immovable property or giving any educational service.

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Rajesh Pagadala (30 Points)
Replied 02 December 2016

but Abhishek ji I had received a notice from department regarding this issue

Abhishek (Student CA IPC / IPCC) (143 Points)
Replied 02 December 2016

https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st25-2012

refer point no 9

Rajesh Pagadala (30 Points)
Replied 02 December 2016

thank you Abhishek ji

Venkat Surya (11 Points)
Replied 03 December 2016

The mega exemption notification 25/2012 is being amended periodically.

wherein amendments wide notification 6/2014 clearly exempts only 4 services provided to an educational institution

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Venkat Surya (11 Points)
Replied 03 December 2016

which includes only
transportation, catering, housekeeping, security services.
hence the rental income would no longer be covered under exemptions and is liable to service tax.

Umang harshad shah (article) (33 Points)
Replied 03 December 2016

https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st25-2012

Pratiksha Dhaker (CA FINAL) (97 Points)
Replied 03 December 2016

Agree with Venkat Surya ji...

As per new notification only specific services are exempted , Exempted service do not cover renting of immovable property to any educational institute.