University’s Income from Affiliation Not Subject to Service Tax: Karnataka HC [Read Order]

The Court observed that service tax cannot be levied on affiliation fees collected by universities, as affiliation activities are educational in nature and do not constitute a taxable service.
Karnataka HC - Karnataka High Court - University’s Income - University’s Income from Affiliation - Service Tax - show cause notices - affiliation fees - taxscan

Recently in a notable ruling, the Karnataka High Court, Dharwad Bench,  quashed show cause notices demanding service tax from a university  on income earned through affiliation fees. The court ruled that income from affiliation is not subject to service tax, setting a precedent for educational institutions across the state. The petitioner/assessee is Visvesvaraya Technological University…

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