Service Tax can be paid on Rent to the Land Lord by a Educational Institution, Service Tax

[Janaki Ramam Vobbilisetty]

Dear Sir,

plz. clarify that it is required to pay service tax to the land lord on the play ground taken on rent by a Educational Institution ?. I seen that under Mega notification Educational Institutions are need not pay Service Tax on immovable property for the property taken as rent.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 9 (b) of Notification No. 25/2012-ST dated 20.6.2012 (with effect from 1.7.2012) only Services provided to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Government;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by, such institution.

are exempted. Renting of immovable property (playing ground) to Educational Institution is not exempted under the above Notification.

[PAWAN KUMAR]

Dear Sir,

The reply quoted by Sh.Rajagopalan Ranganathan Sir is correct. service tax is to be charged on such transaction of renting of play ground.