The Finance Ministry, on Friday, clarified that ‘auxiliary educational services’ such as hostels, canteen and school buses will not attract 12 per cent service tax.

“By virtue of the entry in the negative list and by virtue of the portion of the exemption notification, it will be clear that all services relating to education are exempt from service tax,” the Central Board of Excise and Customs (CBEC) said. It further said there were many supplementary services or ‘auxiliary educational services’, which have been defined in the exemption notification.

Such services, the CBEC said, provided to an educational institution were exempt from service tax.

More In: Economy | Business