Education Services under Negative List – Service Tax

The inclusion in / exclusion from negative list [section 66D(l) of Finance Act, 1994 ] for different types of education related services can be illustrated as follows :

Nature of Service	Taxability
School education upto 12th   standard	Covered under negative list – Not taxable.
School examinations fee, etc.	It is part of education and hence covered under the negative list – Not taxable
Conveyance facilities to students	If part of education and cannot be separately covered under negative list – Not taxable
Approved vocational educational course	Covered under negative list – Not taxable
Boarding school (package offered inclusive of   food, rent, etc.)	Covered under negative list – Not taxable; Essential character being education, non-taxable as per rule of bundled services
College education (affiliated to an Indian university)	Recognized by law, covered in negative list – Not taxable
Test for admission in a college / institution	If recognized by law, covered in negative list – Not taxable
Campus recruitment fee	Taxable
Courses recognized by foreign law	Not covered under negative list – Taxable
Coaching centre’s services	Taxable
Placement services	Taxable
Grants-in-aid	As per Rule 6(2)(vii) of the Service Tax (Determination of Value) Rules, 2006, subsidies and grant disbursed by the Government, not directly affecting the value of service, will be excluded from the value of service – Not taxable