Institutes oppose service tax; CAT centre shifted from IIM-A to IIM-B for the next three years.
 
In a board meeting of the directors of the six Indian institutes of management (IIM)s, which lasted more than six hours at IIM-A on Monday, the institutions decided to vehemently oppose the 12.5 per cent service tax levied on them.
 
It was also decided that the Common Aptitude Test (CAT) centre be shifted from IIM-A to IIM-B for the next three years as part of a rotation exercise.
 
However, the members refused to divulge any information on the HRD ministry's controversial proposal to have 27 per cent reservation for OBCs in central universities and top institutions including IIMs and IITs.
 
Bakul Dholakia, director of IIM-A, told mediapersons that the IIMs would collectively oppose the service tax. "All the IIMs will co-ordinate with each other and report their case to the state sales tax department and the Tribunal Appellate," he said.
 
He added that the six IIMs would reply to the notice and that the issue was still a disputed matter. "IIMs are not man power recruiting agencies which is the common view. Placement facilities, arranged by the institute for students, is a part of the educational process," said Dholakia.
 
Another IIM director reiterated that they would oppose the service tax. "IIM-B has gone to the Appellate against the service tax and we will also oppose it," he said.
 
"The six directors of IIMs and its admission committee chairmen discussed different aspects of CAT. The meet was CAT-centred and we also discussed planning for CAT 2006," Dholakia said.
 
He also said that CAT examination results for 2005 for the six IIMs would be declared on April 12 while the CAT examination for 2006 would be held on November 19. The CAT centre, presently at IIM-A, would be shifted to IIM-B. The centre stays with an IIM for a three year period. "The CAT centre will shift to IIM-B from August 1, 2006," he said.
 
Despite being pressed on whether the issue of reservation was discussed at the meeting, Dholakia refused to comment. "We have not received any written communication and it will be premature to comment" was all he said. He also refused to comment on the issue of autonomy or if it was one of the points on the agenda of the meeting.
 
Three of the IIMs "" Ahmedabad, Bangalore and Kolkota ""have refused any aid from the government for the past three years while IIMs at Indore, Lucknow and Kozhikode continue to get aid.
 
"All the six IIMs are not in the same category. Unless the notice specifies, we cannot comment," an IIM official said. The notice is expected to be served in the second week of May, the source added.

 
 

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First Published: Apr 11 2006 | 12:00 AM IST

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