- 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
- Clause 9 of Notificaiton No. 25/2012
Item No. 9 of the Notification No. 25/2012-ST, dated 20-6-2012 exempts following services received by eligible educational institutions are exempted from service tax:
(i) transportation of students, faculty and staff of the eligible educational institution;
(ii) catering service including any mid-day meals scheme sponsored by the Government;
(iii) security or cleaning or house-keeping services in such educational institution
(iv) services relating to admission to such institution or conduct of examination.
Further, for the purposes of this exemption, “educational institution” is being defined in clause (oa) of the exemption notification 25/2012-ST as institutions providing educational services specified in the negative list. However, w.e.f. 14-05-2016, clause (oa) has been substituted and new clause reads as under:
“educational institution” means an institution providing services by way of:
- pre-school education and education up to higher secondary school or equivalent;
- education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
- education as a part of an approved vocational education course;
- Clause 9A of Notification No. 25/2012 dated 20-06-2012 provides for exemption against any services provided by,
- the National Skill Development Corporation set up by the Government of India;
- a Sector Skill Council approved by the National Skill Development Corporation;
- an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;
- a training partner approved by the National Skill Development Corporation or the Sector Skill Council,
in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c) any other Scheme implemented by the National Skill Development Corporation.
- Clause 9C of Notification No. 25/2012 dated 20-06-2012 provides for exemption against services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under Skill Development Initiative (SDI) Scheme.
- Clause 9C of Notification No. 25/2012 dated 20-06-2012 provides for exemption against Services provided by training providers (Project implementation agencies) under 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.
- Clause 8 of Notificaiton No. 25/2012 dated 20-06-2012 provides for exemption against services by way of training or coaching in recreational activities relating to arts, culture or sports.Thus vocational training in such programs when provided for recreational purpose shall be exempt.