Indian Institute of Science Education and Research Bhopal

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Directors Office
IISERB/DIR/2014/01
J anuary 1, 2014
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Notification
***
This is to notify that the Indian Institute of Science Education and Research Bhopal
is an Institute of national importance for imparting Science Education and carrying
out Research. The Institute is established under NIT (Amendment) Act 2012
by the Ministry of Human Resource Development, Government of India.
(http://iiserb.ac.in/page.php?page=Act%20&%20Statutes&pid=143&id=152). The objective
of Institute is to promote quality education and research in frontier areas of Pure and Applied
Sciences. IISER Bhopal qualifies for following exemptions:
1. Income Tax (TDS) :
The Institute is wholly financed by GOI and the income of institute is exempted from
Income Tax u/s 10(23C) (iiiab) of Income Tax Act 1961. Therefore no TDS is required to
be deducted from any Grants/ Financial Assistance/ Funds/ Interest/ Rent/ Consultancy
Fee etc. payable to the Institute.
2. Service Tax :
The IISER Bhopal is exempted from paying/ collecting Service Tax for services provided
to or by the Institute as per GOI - Ministry of Finance, Department of Revenue
notification No. 25/2012-Service Tax dated 20/06/2012 read with the Circular No.
172/7/2013-Service Tax dated 19/09/2013, which are enclosed herewith as Annexure - I
and II.
Therefore all concerned are hereby notified to follow the provisions made in the Income Tax
Act as well as the rules announced by the GOI exempting the educational institutes
from Income Tax and both from payment and collection of Service Tax also.
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Service Tax Mega Exemption Notification No 25/2012
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (I))
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 25/2012-Servlce Tax
New Delhi, the 20th June, 2012
G.S.R ...... (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of notification number 12/2012-
Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i) videnumber G.S.R. 210 (E), dated the 1?'h March, 2012, the Central Government, being satisfied that it
is necessary in the public i n t r ~ t so to do, hereby exempts the following taxable services from the whole of
the service tax leviable thereon under section 668 of the said Act, namely:-
1. Services provided to the United Nations or a specified international organization;
2. Health care services by a clinical establishment, an authorised medical practitioner or para-medics;
3. Services by a veterinary clinic in relation to health care of animals or birds;
4. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of
charitable activities;
5. Services by a person by way of-
(a) renting of precincts of a religious place meantfor general public; or
(b) conduct of any religious ceremony;
6, Services provided by-
(a) an arbitral tribunal to-
(i) any person other than a business entity; or
(ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year;
(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,-
(i) an advocate or partnership firm of advocates providing legal services ;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or
(c) a person represented on an arbitral tribunal to an arbitral tribunal;
7. Services by way of technical testing or analysis of newly developed drugs, including vaccines and herbal
remedies, on human participants by a clinical research organisationapproved to conduct clinical trials by the Drug
Controller General of India;
8. Services by way of training or coaching in recreational activities relating to arts, culture or sports;
Annexure - I
9. Serv!ces provided to or by an educational Institution In respect of education exempted from service ta>e, by
way of,-
(a) auxiliary educational services; or
(b) renting of immovable property;
10. Services provided to a recognised sports body by-
(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event
organized by a recognized sports body;
(b) another recognised sports body;
11. Services by way of sponsorship of sporting events organised,-
( a) by a national sports federation, or its affiliated federations, where the participating teams or
individuals represent any district, state or zone;
(b) by Association of Indian Universities, Inter-University Sports Board, School Games
Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or
Special Olympics Bharat;
(c) by Central Civil Services Cultural and Sports Board;
(d) as part of national games, by Indian Olympic Association; or
(e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;
12. Services provided to the Government, a local authority or a governmental authority by way
of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation,
or alteration of -
(a) a civil structure or any other original works meant predominantly for use other than for commerce,
industry, or any other business or profession;
(b) a historical monument, archaeological site or remains of national importance, archaeological excavation,
or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24
of 1958);
(c) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural
establishment;
(d) canal, dam or other irrigation works;
(e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or
(f) a residential complex predominantly meant for self-use or the use of their employees or other persons
specified in the Explanation 1 to clause 44 of section 65 B of the said Act;
13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair,
maintenance, renovation, or alteration of,-
(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;
(b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National
Urban Renewal Mission or Rajiv Awaas Yojana;
...
F. No.B1/14/2013-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise& Customs
Tax Research Unit
Circular No.1721712013 - ST
146-F, North Block
New Delhi, 19
1
h September, 2013
To
Chief Commissioners of Central Excise and Service Tax (All),
Director General (Service Tax), Director General (Central Excise Intelligence),
Director General (Audit),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).
Madam/Sir,
Subject: Education services- clarification -- reg.
The following representations have been received seeking clarifications regarding the levy of service
tax on certain services relating to the education sector:
1. Private Schools Correspondents Confederation, Madurai.
2. Tamil Nadu Nursery, Primary, matriculation and Higher Secondary Schools Association, Chennai.
3. Punjab Association, Chennai.
4. Association of Self financing Universities of Rajasthan
5. Unaided Schools' Forum, Mumbai.
6. Vedavalli Vidyalaya, Wallajapet. .
7. Independent Schools Associations, Chandigarh.
8. Mother Teresa Public School, New Delhi.
9. BVM Global, Chennai.
10. Sastra University, Tanjavur.
11 . HLC International, Chennai.
12. Sodexo Food Solutions, Mumbai.
13. Federation of Associations of Maharastra, Mumbai.
2. The matter is covered by two provisions of the Finance Act, 1994. Section 66D of the Finance Act
contains a negative list of services and clause (I) thereof reads as under:
"services by way of-
(i) pre-school education and education upto higher secondary school or equivalent;
as a part of a curriculum for obtaining a qualification recognized by any law for the time
being in force;
(iii) education as a part of an approved vocational education course;".
Further section 93(1) of the Finance Act, 1994, enables the Government to exempt generally or
subject to such conditions taxable service of specified description. By virtue of the said power,
Government has issued a notification No.25/2012-ST dated 20
1
h June, 2012, exempting certain
services. Sl.no.9 thereof reads as follows:
"Servicesprovided to an educational institution in respect of education exempted from service tax, by way
of,-
(a) auxiliary educational services; or
.-.
Annexure - II
(b) renting of immovable property;".
As defined in the said notification, "auxiliary educational services" 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.
3. By virtue of the entry in the negative list and by virtue of the portion of the exemption notification, it
will be clear that all services relating to education are exempt from service tax. There are many
services provided to an educational institution. These have been described as "auxiliary educational
services" and they have been defined in the exemption notification. Such services provided to an
educational institution are exempt from service tax. For example, if a school hires a bus from a
transport operator in order to ferry students to and from school, the transport services provided by the
transport operator to the school are exempt by virtue of the exemption notification.
,4. : In addition to the services mentioned in the definition of "auxiliary educational services", other
examples would be hostels, housekeeping, security services, canteen, etc.
5. Thus the apprehensions conveyed in the representations submitted by certain educational institutions
and organizations have no basis whatsoever. These institutions and organizations are requested not
to give credence to rumours or mischievous suggestions. If there is any doubt they are requested to
approach the Chief Commissioner concerned.
6. All concerned are requested to acknowledge the receipt of this circular.
(J.M.Kennedy)
Director, TRU
Tel: 011-23092634
E-mail: jm.kennedy@nic.in