Re: Service Tax Notification No. 06/2014 dated 11th July 2014
Please refer to the above notification, which clearly shows that only a few services like transportation, catering, security, house-keeping and services relating to admission or conduct of admission are exempted from service tax.
For more clarification refer to the following article:-
Conclusion: Service tax is a statutory compliance of the company which we have to follow carefully and sincerely because of the following reasons and clarifications :
We are neither providing any course or content material nor helping the school in respect of providing any kind of education. We are providing cloud based School Administration Solution under S-a-a-S (Software-as-a-Service) model and host all our clients on our universal web application providing them online support and services.
Most importantly we have created an spacial environment for the schools to work themselves with an extensive research base of more than 20 years with in depth research and analysis working with more than 125 schools. We have to visit the schools only for the initial training and our cloud based services being under the S-a-a-S model cannot be considered as ordinary services which the schools can even imagine to carry out themselves.
We give them provisioning to upload their data through a universal platform using server resources, space and bandwidth with all the advanced security measures. Even if any school has to host their website/applications in data-centers/web-hosters like Go Daddy, Big Rock, Net4 India etc., they have to pay service tax. We are not an exception.
Although the schools may upload their educational content material on the website or parent dashboard, our services can not be considered as "auxiliary educational services" because the content being uploaded belong to them and we have given them the interface/environment to upload any kind of content/data.
Government's intention to exempt service tax from some services is an effort to reduce the extra burden which falls on the students/parents. On the contrary our services help the schools to work more efficiently therefore reducing their cost immensely on IT Infrastructure, manpower resources, administration and management.