Education is not for profit in India. Therefore , educational building are not for commercial and industrial purpose. No Service tax on such activity. 'commercial purposes'.
Further, CBEC has clarified vide MF(DR) circular No. B2/8/2004-TRU dated 10-9-2004, - ‘Such constructions which are for the use of organizations or institutions being established solely for educational, religious, charitable, health, sanitation or philanthropic
purposes and not for the purposes of profit are not taxable, being non-commercial in nature. Generally, Government buildings or civil constructions are used for residential, office purposes or for providing civic amenities. Thus, normally Government constructions would not be taxable. However, if such constructions are for commercial purposes like local Government bodies getting shops constructed for letting them out, such activity would be commercial and builders would be subjected to service tax’.
Ravindra Kumar
About Me
- ravindra kumar
- I did my graduation from IIT Delhi and Post Graduate Diploma in Supply Chain and Logistics from LIBA Chennai.Worked five years in the BHEL then fifteen years in Revenue Department .Currently practicing as Indirect Tax Consultant in Service Tax, Excise and Customs.
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