NO SERVICE TAX ON FEES FOR CAMPUS INTERVIEWS: CBEC

The Central Board of Excise and Customs (CBEC) recently clarified that educational institutes like IITs and IIMs were not liable to pay service tax under the category of “manpower recruitment or supply service” on the fees charged from prospective employers like corporates, who come to these institutes for recruiting candidates through campus interviews. These institutes were not liable to pay service tax prior to May 1, 2006 under the category of ‘manpower recruitment or supply service’ as during this period only commercial concerns were to be taxed. As regards the period after May 2006, decision should be taken after taking into account all material facts on case to case basis.