- General Exemption
Vide Notification No 33/2012-ST, dated 20.06.2012 – Exemption to Small service providers having taxable turnover of less than 10 Lakhs and providing services other than by way of under a brand name.
Vide Notification No. 14/ 2012-ST, dated March 17, 2012 – Exemption in respect of Taxable service involving import of technology, from so much of service tax, as is equivalent to the extent of amount of R&D Cess payable on the said transfer of technology under the provisions of section 3 of the Research and Development Cess Act, 1986.
- To Foreign Diplomatic missions and their personnel
Vide Notification No 27/2012-ST, dated 20.06.2012 – Exemption for all the taxable services provided by any person, for the official use of a foreign diplomatic mission or consular post in India, or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein.
Vide Notification No 32/2012-ST, dated 20.06.2012 – All taxable services provided by TBI or STEP have been exempted
Vide Notification No 40/2012-ST, dated 20.06.2012, all taxable services received by a Unit located in a Special Economic Zone (SEZ) or Developer of SEZ for the authorized operations, has been exempted from the levy of whole of the service tax.
- Specific Exemptions
Item No. 4 of the Notification No. 25/2012-ST, dated 20-6-2012 provides exemption to charitable sector:
“4. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;”
To claim exemption under this item, the following two conditions should be satisfied:
- Entity should be registered under section 12AA of Income-tax Act, 1961
The organizations registered under section 12AA of the Income-tax Act, 1961 are only entitled to avail the benefit of the exemption from payment of service tax. The application for registration is required to be made under section 12A of the Income–tax Act, 1961. The Commissioner of Income-tax shall call for such documents or information as he thinks necessary in order to satisfy himself about the activities of the trust.
Further, the exemption from service tax will start from the date of registration under section 12AA of the Income-tax Act, 1961.
Services must be provided by way of charitable activities in order to claim exemption under item No. 4 of the Notification No. 25/2012-ST, dated 20-6-2012.