Exemptions 2017-04-06T10:48:12+00:00

Exemptions

S.No.Nature of ServiceProvided byConditions
1Any ServiceAny PersonProvided to the United Nations or a specified international organization
2Health care servicesA clinical establishment, an authorized medical practitioner or para-medics-
3Services provided by way of transportation of a patient in an ambulanceAny person
3A.Services in relation to preservation of Stem cells or any other services in relation to such preservationCord Blood Banks
4Services in relation to treatment or disposal of bio-medical waste or the process incidental thereto providedOperators of Common Bio-medical Waste Treatment FacilityTo a clinical establishment.
5Services in relation to health care of animals or birdsVeterinary clinic-
6Services by way of charitable activitiesAn entity registered under section 12AA of the Income tax Act, 1961
7Services by way of :Any person-
7A.Services in respect of a religious pilgrimageSuch pilgrimage should be facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement
8Any serviceAn arbitral tribunalWhen provided to:
9Legal ServiceAn individual as an advocate or a partnership firm of advocatesWhen provided to:
10All servicesA person represented in an arbitral tribunalWhen provided to an arbitral tribunal
11Services by way of training or coaching in recreational activities relating to arts, culture or sportsAny Person-
12All ServicesAn educational institutionTo its Staff, Faculty and Students.
13Services in relation to :Any PersonTo an educational institution
13AServices in relation to(i) the National Skill Development Corporation set up by the Government of India;
(a) the National Skill Development Programme implemented by the National Skill Development Corporation; or(ii) a Sector Skill Council approved by the National Skill Development Corporation;
(b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or(iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
(c) any other Scheme implemented by the National Skill Development Corporation;(iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council
13BServices provided to studentsIndian Institutes of Management, as per the guidelines of the Central GovernmentSuch exemption is for specified educational programmes, except Executive Development
Programme
13Cservices of assessing bodies empanelled centrally by way ofDirectorate General of Training, Ministry of Skill Development and Entrepreneurship
assessments under Skill Development Initiative (SDI) Scheme
13Dservices provided by training providers (Project implementation agencies) underTraining providers
Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of
Rural Development by way of offering skill or vocational training courses
certified by National Council For Vocational Training
14Any ServiceWhen provided to a recognised sports body
15Services by way of sponsorshipAny personSuch sponsorship is for sporting events organised,-
16Services by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration when provided to the Government, a local authority or a governmental authorityAny personSuch services should be performed on:
16AServices by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration when provided to the Government, a local authority or a governmental authority.Any personServices under a contract which had been entered into prior to the 1st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date:
The exemption shall not apply on or after the 1st
April, 2020
17Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alterationAny personPerformance should be of:
18Services by way of construction, erection, commissioning, or installation of original works Any personShould be pertaining to,-
[contracts for monorail or metro were entered into before 1st March, 2016, on which appropriate stamp duty will be covered under the above exemption]
housing project approved by the competent authority under:
All (Urban) Mission/ Pradhan Mantri Awas Yojana;
(ii) any housing scheme of a State Government.
18AServices by way of construction, erection, commissioning, or installation ofAny person
original works pertaining to an airport or port provided under a contract which
had been entered into prior to 1
st March, 2015 and on which appropriate stamp
duty, where applicable
19Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b)Any personWhen relating to original literary, dramatic, musical, artistic works or cinematograph films. Cinematograph films will only include those films which will be exhibited in a cinema hall or theater.
20Services in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatreA performing artist
21Services by way of collecting or providing newsAn independent journalist, Press Trust of India or United News of India
22Services by way of rentingA hotel, inn, guest house, club, campsite meant for residential or lodging purposesSuch unit should have declared tariff of a unit of accommodation below rupees one thousand per day or equivalent
23Services provided in relation to serving of food or beveragesA restaurant, eating joint or a messSuch premises should not have the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year
23AServices provided in relation to serving of food or beveragesA canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948)
24Services by way of transportation from one place in India to anotherRail or vesselWhen provided for transportation of:
25Services by way of transportationA goods transport agencyTransportation of:
26Services by way of giving on hireAny personWhen provided to:
27Transport of passengers, with or without accompanied belongingsBy airWhen embarking from or terminating in an airport located in the Seven north eastern states or at Bagdogra
A non air - conditioned contract carriage other than radio taxi
Should not be for tourism, conducted tour, charter or hire
ropeway, cable car or arial tramway
28Services by way of carrying out any activity in relation to any functions in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation.Such services should be provided to Government, a local authority or a governmental authority.
29Services of general insurance businessInsurance CompanyWhen provided under specified schemes.
30Any serviceAnincubate up to a total turnover of fifty lakh rupees in a financial year.
31Services by way of reimbursement of charges or share of contributionBy an unincorporated body or a non- profit entity registered under any law for the time being in forceSuch services should be provided:
32Services by the following persons in respective capacitiessub-broker or an authorised personTo a stock broker
Authorised person;to a member of a commodity exchange
selling agent or a distributer of SIM cards or recharge coupon vouchers
business facilitator or a business correspondent
to a banking company or an insurance company, in a rural area
sub-contractor providing services by way of works contractto another contractor providing works contract services which are exempt
33Services of carrying out an intermediate production process as job workAny personWhen undertaken in relation to-
34Services in respect of a business exhibition held outside IndiaAn organizer-
36Services by way of slaughtering of animalsAny person-
37Any Services receivedProvider of service located in a non- taxable territoryWhen received by:
38Services by way of lending of books, publications or any other knowledge- enhancing content or materialPublic libraries-
39Services by way of transfer of a going concern, as a whole or an independent part thereofAny person-
40Services by way of public conveniencesAny person-
41Any ServiceBy ESIC
42Services by way of any activity in relation to any function entrusted to a municipality under article 243 W of the ConstitutionGovernmental authority-
43Services of life insurance under following schemes:Any person
(a) Janashree Bima Yojana (JBY); or
(b) Aam Aadmi Bima Yojana (AABY).
(c) Life micro-insurance product as approved by the insurance regulatory and development authority, having maximum amount of cover of fifty thousand rupees.
(d) Varishtha Pension Bima Yojna
44Service by way of loading, unloading, packing, storage or warehousing of rice, cotton, ginned or baled.Any person
45Services in relation to management of foreign exchange reserves.Any person outside IndiaReceived by Reserve bank of India
46Services in relation to tour conducted wholly outside IndiaTour OperatorTo Foreign Tourist
47Services in relation to Common Effluent Treatment Plant (CETP)Operator of CETP
48Services in relation to Pre Market activities relating to Fruits and VegetablesAny PersonWhen undertaken in relation to
49Services in relation to admission to museum, national park, wildlife sanctuary, tiger reserve or zooAny person
50Services in relation to exhibition of movie to distributors/association of exhibitor.Any Person
51Services in relation to right to admission to :
52Any ServicesEmployees' Provident Fund Organisation (EPFO)When provided to persons governed under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952)
53Any ServicesInsurance Regulatory and Development Authority of India (IRDA)When provided to insurers under the Insurance Regulatory and Development Authority of India Act, 1999
54Services by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities marketServices provided by Securities and Exchange Board of India (SEBI)
55Services by way of transportation of goods by an aircraftAny PersonOnly from a place outside India upto the customs station of clearance in India.
56Services to a business entity with a turnover upto Rupees ten lakhs in the preceding financial yearGovernment or a local authority
57Services provided to another Government or local authorityGovernment or a local authoritySuch exemption is not applicable to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994
58Services provided by way of issuance of passport, visa, driving licence, birth certificate or death certificateGovernment or a local authority
59Services provided where the gross amount charged for such services does not exceed Rs. 5000Government or a local authoritySuch exemption is not applicable to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994
60Services provided by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contractGovernment or a local authority
61Services provided by way of:Government or a local authority
62Services provided by way of assignment of right to use natural resources to an individual farmer for the purposes of agricultureGovernment or a local authority
63Services of any activity in relation to any function entrusted to a Panchayat under article 243G of the ConstitutionGovernment or a local authority
64Services by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1stApril, 2016Government or a local authorityProvided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in instalments, for assignment of right to use such natural resource
65Services by way of allowing a business entity to operate as a telecom service provider or use radio frequency spectrum during the financial year 2015-16 on payment of licence fee or spectrum user charges, as the case may beGovernment or a local authority
66Services by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges (MOT)Government or a local authority

Other Exemptions

  • 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:

  1. 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
  2. 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

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