Labelled ‘Commercial Coaching Centre’, IIM-Ahmedabad Goes To MHRD After Being Asked To Pay Rs 52 Crore As Taxes

After the Revenue Department of Finance Ministry has asked Indian Institute of Management-Ahmedabad (IIM-A) to pay Rs 52 crore as service taxes, the institution has sought intervention of Ministry of Human Resource Development (MHRD), Indian Express has reported.

“We have made a request to the HRD Ministry on the matter and the matter is being pursued. IIM-A has appealed to the Tribunal on February 13, 2018,” Deepak Bhatt, manager, communications, at IIM-A is quoted to have said.

The revenue authorities consider two of its programmes- the two-year Postgraduate Programme in Food and Agri-business Management (PGP-FABM) and the one-year Postgraduate Programme in Management for Executives (PGPX) as taxable since 2009-10. In this regard, the authorities have asked the premier institute to pay Rs 52 crore as taxes.

According to the report, the letter states, “As the Principal Commissioner of Central GST has passed an order, the institute has no option but to appeal to the Tribunal by paying Rs 4.01 crore as per deposit fee, 7.5% of the service tax demand of Rs 52 crore, which will block the fund and strain the resources of the institute. Given this background, I am writing to request you for your kind support and intervention in this matter. Through your good office, we request that our case be represented with the Ministry of Finance to revoke the order passed by the Revenue Authorities”.

IIM-Calcutta is also reported to have written a letter to MHRD on the same matter. The MHRD is reported to have forwarded the letters to the Finance Ministry.