- Small Service Provider
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
- Import of Technology
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 Diplomat
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
- Services by TBI or STEP
Vide Notification No 32/2012-ST, dated 20.06.2012 – All taxable services provided by TBI or STEP have been exempted
- Services provided to SEZ
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.
- Property tax in renting
Exemption has been granted in computing Service tax on the value in case of Renting Services from so much of the value which relates to property tax on such property.
- Exemption against Scrips
Vide Notification No. 6/2013, 7/2013, 8/2013, Central Government has exempted the taxable services provided or agreed to be provided against a scrip by a person located in the taxable territory under following schemes from the whole of the service tax leviable thereon under section 66B of the said Act:
- Focus Market Scheme
- Focus Product Scheme
- Vishesh Krishi and Gram Udyog Yojana
The exemption shall be subject to the following conditions, namely:-
- The scrip is issued against exports to the countries notified by the Government of India in accordance with provisions of Foreign trade policy and Handbook of Procedures.
- The scrip is registered with the Customs Authority at the port of registration
- The holder of the scrip, to whom taxable services are provided or agreed to be provided shall be located in the taxable territory;
- The holder of the scrip, presents the scrip to the said Customs Authority along with a letter and an invoice or challan or bill, by the service provider indicating details of his jurisdictional Central Excise Officer and the description, value of the taxable service provided or agreed to be provided and service tax leviable thereon;
- The said Customs Authority, shall debit the service tax leviable, but for this exemption in or on the reverse of the scrip and also mention the necessary details thereon, updates its own records and sends written advice of these actions to the said Officer;
- The date of debit of service tax leviable, in the scrip, by the said Customs Authority shall be taken as the date of payment of service tax;
- In case the service tax leviable as per the point of taxation determined in terms of the Point of Taxation Rules, 2011 is prior to date of debit or that the rate of tax determined in terms of rule 4 of the Point of Taxation of Rules, 2011, is in excess of the rate of service tax mentioned in the invoice, bill or challan, as the case may be, the holder of the scrip shall pay such interest or short-paid service tax along with interest, as the case may be;
- The holder of the scrip presents the scrip debited by the said Customs Authority within thirty days to the said Officer, along with an undertaking addressed to the said Officer, that in case of any service tax short debited in the scrip, shall pay such service tax along with applicable interest;
- that based on the said written advice and undertaking, the said Officer shall verify and validate, on the reverse of the scrip, the details of the service tax leviable, which were debited by the said Customs Authority, and keep a record of payment of such service tax and interest, if any;
- The service provider retains a copy of the scrip, debited by the said Customs Authority and verified by the said Officer and duly attested by the holder of the scrip, in support of the provision of taxable services under this notification; and
- The said holder of the scrip, to whom the taxable services were provided or agreed to be provided shall be entitled to avail the drawback or CENVAT credit of the service tax leviable under section 66B of the said Act, against the service tax debited in the scrip and validated by the said Officer.
- Exemption from Service Tax against scrip under MEIS and SEIS
Exemption has been granted to taxable services provided or agreed to be provided against a scrip by a person located in the taxable territory from the whole of the service tax leviable thereon under section 66B of the said Act. Scrips as against exemption provided by the Notifications are as under:
- Service Exports from India Scheme duty credit scrip issued by the Regional Authority in accordance with paragraph 3.10 read with paragraph 3.08 of the Foreign Trade Policy. – Notification No. 11/2015 dated 08.04.2015
- Merchandise Exports from India Scheme duty credit scrip issued to an exporter by the Regional Authority in accordance with paragraph 3.04 read with paragraph 3.05 of the Foreign Trade Policy – Notification No. 10/2015 dated 08.04.2015
The exemption has been granted in line with the two schemes announced by Government of India in Foreign Trade Policy, 2015-2020