No Service Tax Payable on Student Recruitment Services Rendered to Foreign Universities: CESTAT

CESTAT exempts student recruitment services for foreign universities from service tax, ruling such activities as non-taxable under export service provisions. The tribunal clarified that as the service recipient (foreign university) is located outside India and payment is received in convertible foreign exchange, it qualifies as an export of service. This significant decision provides much-needed clarity on the tax treatment for education-related intermediaries, ensuring that their efforts to facilitate Indian students' admission to overseas institutions are not burdened by domestic service tax. It aims to support and promote the growth of the education services export sector from India.