Transportations service by educational institution to students, faculty and staff of such institutions for the period 1 April 2013 to 11th July 2014 is exempt from service Tax. (Service Tax Notification No. 45/2016, Dated 30-09-2016)

Service Tax on transportation service by educational institutions to students, faculty and staff of such institutions is already exempted by Notification No. 06/2014, Dated 11 July 2014, w.e.f 11^th July 2014.

But for the period 1April 2013 to 10 July 2014, transportation service by educational institutions to students, faculty and staff of such institutions was liable to service Tax.

Vide notification no. 45/2016, Dated 30-09-2016, Central Government directs that service tax payable on the service of transportation, by educational institutions as defined in clause (1) of section 66 D of the Finance Act, 1994(32 of 1994) during the said period, to students, faculty and staff of such institutions, shall not be required to be paid.

As per the Notification No. 6/2014, Dated 11 July 2014.

“Services provided,-

(a) by an educational institution 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 institution.”

“educational institution” means an institution providing services by way of:

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course;

“approved vocational education course” means, –

(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or

(ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship;‟