Ahmedabad 2025
The Service Tax Department has issued notices to top international schools and private universities operating in Ahmedabad to pay service tax under the reverse charge mechanism.
Schools and universities collect ₹15 crore in service tax.
After receiving the notice, some schools and private universities have deposited the tax amount.
This fee is charged by visiting professors or teachers. Similarly, visiting professors from abroad also charge fees at private universities. If this amount is paid, tax is payable, but the schools do not pay this tax, hence the notice.
An international school or private university forms a private company and contracts out workshops, seminars, and lectures to it to avoid paying taxes.
If you open your own company and hire services yourself, you receive tax relief.
They are also not required to file returns under GST. If the return is filed under GST, a lot of technical information also has to be provided.