[1]Chennai: Over one crore students in private schools across Tamil Nadu will be sending post cards to finance minister P. Chidambaram urging him to withdraw service tax imposed on the education sector.
“We will be sending SMSes, emails to over one crore students and their parents urging them to send postcards to the finance minister requesting him not to levy service tax for schools and colleges”, K.R. Nandakumar, secretary of Tamil Nadu nursery, primary, matriculation and higher secondary schools association, said after taking part in a meeting of school managements at Bengaluru.
Pointing out that school managements would approach members of Parliament to help them meet Prime Minister Manmohan Singh, the association secretary said they had planned to meet PM on September 12 to submit a memorandum requesting him to withdraw service tax. Nandakumar also said they would also seek chief minister’s intervention and request her to write to PM seeking him to review the order.
School managements are also contemplating to move various high courts in the country to get a legal remedy. A school correspondent on condition of anonymity noted that levy of service tax would only help schools get into profiteering.
“Educational institutions come under the Trust Act, which exempts collection of tax from schools and colleges. When the Act says so how can you collect service tax from us?” the correspondent asked and urged Union government to provide more clarity.
However auditors clarify that the service tax order does not speak anything about tuition fee and so parents need not worry. “The order says service tax can be collected for hostel, mess and transportation and so there is very less chance for the fee to go high”, an auditor who did not want to be named.
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[1] http://archive.asianage.com/school0001png-887