I am working for one of the reputed Educational Institution in India. As far as instructions received from our consultant it is being observed that the SERVICES PROVIDED BY THE EDUCATIONAL INSTITUTES ARE EXEMPTED FROM SERVICE TAX THAT TOO AFTER COMPLYING SOME NORMS.
THERE IS NO EXEMPTION TO SERVICE TAX FOR THE SERVICES PROVIDED BY SOMEBODY TO EDUCATIONAL INSTITUTES. For Example, The Telephone Department also should give the Service Tax Exemption in thier Bill. Please ask the same question to the Educational Institute with whom you are dealing.