Amendment in Exemptions relating auxiliary educational services provided to educational institution vide Notification No.25/2012-ST

Entry 9 of Notification No.25/2012-ST provides that services provided to (to or by prior to amendment vide Notification No.3/2013-ST w.e.f 1/4/2013) an educational institution in respect of education exempted from service tax, by way of -


(i) renting of immovable property ; or
(ii) auxiliary educational services.

Effect of amendment: Earlier, auxiliary educational services and renting of immovable property services provided TO or BY an educational institution in respect of education exempted from service tax, were exempt from service tax.

However, exemption to auxiliary educational services and renting of immovable property provided BY an educational institution has now been withdrawn. Thus, w.e.f. 1/4/2013, only the auxiliary educational services and renting of immovable property provided TO an educational institution in respect of education exempted from service tax.

As per Para 2(f) of Notification No.25/2012-S.T., dated 20/06/2012 Auxiliary educational service means any service relating to -

(i) imparting of any skill, knowledge or education; or
(ii) development of course content; or
(iii) any other knowledge-enhancement activity, whether for the students or the faculty; or
(iv) any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including following 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.

Therefore, service tax is chargeable on such auxiliary educational services which are in respect of education chargeable to service tax.