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TMI BlogService tax exemptionX X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax exemption X X X X Extracts X X X X X X X X Extracts X X X X ..... arranged to these students is exempted. kindly refer the exemption notification no.06/2014 w.e.f. 11.07.2014 kindly advice for this. Thanking you , Rahul Reply By Rajagopalan Ranganathan: The Reply: Sir, As per Sl. No. 9 (b) of Notification No. 25/2012-ST dated 20.6.2012 as amended only Services provided to an educational institution, by way of,- (i) transportation of students, faculty an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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. In my opinion strictly speaking the clause 'transport of students, faculty and staff' is applicable only to service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided within taxable territory (India). In respect of foreign tours arranged by the educational institution there is no exemption available. However it is a debatable point and requires adjudication by quasi-judicial authorities or by courts if necessary. You may say that you are eligible to exemption as noted above but the department will not agree and they will showcause Notice denying the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption to you. Reply By RAHUL DAS: The Reply: Sir, We the travel agents are providing the service to the educational institute. Reply By KASTURI SETHI: The Reply: Dear Querist, I support the views of Sh.Ranganathan Sir and add my views as under:- Extract of Notification No.26/12-ST as amended. b. "package tour" means a tour wherein transportation, accommodation for stay, food, tourist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour, c. "tour operator" means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and includes any person engaged in the business of operating tours. Up to 11.07.2014 :- (Notification No.25/12-ST) [Entry No.9:-Services provided to or by an educational institution in respect of education exempted from service tax, by way of,- (a) auxiliary educational services; or (b) renting of immovable property;] After 11.07.2014 :- [9. Services provided :- (a) by an educational ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titution to its students, faculty and staff; (b) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institution;] PRIOR TO 1.7.12 (Relevant for clarification of nature of service) Tour Operator's definition and scope has been defined under erstwhile Section 65(115) as:- "Tour Operator" means any person engaged in the business of planning, scheduling, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode transport, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made there under; Explanation:- For the purposes of this clause, the expression "tour" does not include a journey organized or arranged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for use by an educational body, other than a commercial training or coaching centre, imparting skill or knowledge or lessons on any subject or field." Only 'JOURNEY' and NOT 'Package Tour' is out of definition of 'Tour Operator'. Journey is exempted. Para No.3.2 Board's DOF No.334/4/2006-TRU dated 28.2.2006. "A composite service, even if it consists of more t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han one service, should be treated as a single service based on the main or principal service and accordingly classified." Equal to 'Bundled Services' defined under Section 66 F(1) of the Finance Act. A perusal of above reveals that exemption from ST is not available whether before 1.7.12 and after 1.7.12 and before 11.7.14 and after 11.7.14. N.B. Definition of 'auxiliary educat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional services' does not include 'package tour'. X X X X Extracts X X X X X X X X Extracts X X X X
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