Evasion of Income Tax by Educational Institutions
	17:55 IST

Rajya Sabha During the course of enquiries carried out by the Income Tax Department, instances of tax evasion by private educational institutions, running various courses, some of which are not recognized by the UGC/AICTE, have come to notice. So far as Service Tax is concerned, proceedings have been initiated against some of the institutes for evasion of service tax on services provided by them in relation to commercial training or coaching. The Indian Institute of Planning and Management (IIPM), New Delhi has not paid income tax in the last two Assessment years, i.e. A.Y. 2005-06 and A.Y. 2006-07 as the income was claimed as exempt under section 10(23C) (vi) of the Income-tax Act, 1961. Service tax paid by IIPM, New Delhi and its other associated companies, during last two years, is nil. IIPM has incurred an expenditure of Rs.17,28,27,370/- and Rs.31,62,69,231/- on advertisement for the financial years 2004-05 and 2005-06 respectively. The source of funding of such advertisement is out of various receipts from activities carried out by IIPM as reflected in the Income & Expenditure statements. Shri S.S. Palanimanickam, Minister of State for Finance gave this information in reply to a question raised by Shri Dharam Pal Sabharwal in Rajya Sabha today. BSC/BY/GN-256/07