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The Central Government had issued N/N 12/2012 dated 17-03-2012 exempting certain taxable services from the whole of the service tax.
Now, the Central Government has issued N/N 25/2012 (called the Mega Notification) dated 20-06-2012 in supersession of the aforesaid notification. The ambit of the exemption notification has been increased by covering additional taxable services.
These ADDITIONAL TAXABLE SERVICES are as under (I have given only the changes and left out the parts which are unchanged)
The bold & underlined portion represents the changes.
1. Services provided by-
a. an arbitral tribunal to -
i. any person other than a business entity; or
ii. a business entity with a turnover up to rupees ten lakh in the preceding financial year
b. an individual as an advocate or a partnership firm of advocates by way of legal services to,-
i. an advocate or partnership firm of advocates providing legal services ;
ii. any person other than a business entity ; or
iii. a business entity with a turnover up to rupees ten lakh in the preceding financial year
c. a person represented on an arbitral tribunal to an arbitral tribunal
2. Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-
a. auxiliary educational services; or
b. renting of immovable property
“auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution;
3. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning , installation , completion , fitting out , repair, maintenance , renovation, or alteration of specified work.
“governmental authority’’ means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution;
4. Services provided by way of construction, erection, commissioning , installation , completion , fitting out , repair, maintenance , renovation, or alteration of specified work
a. road, bridge.
b. a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana.
c. building owned by an entity.
d. pollution control.
e. electric crematorium a structure meant for funeral, burial or cremation of deceased.
5. Services by way of construction, erection, commissioning , or installation of original works pertaining to
b. Single residential unit.
c. Low cost houses.
d. Post harvest storage facility.
e. Mechanized food grain handling system.
6. Services by way of transportation by rail or a vessel from one place in India to another of the following goods-
a. petroleum and petroleum products.
b. relief materials.
c. defence or military equipments.
d. postal mail or mail bags.
e. household effects.
g. railway equipments.
h. agricultural produce.
j. chemical fertilizer.
7. Transport of passengers, with or without accompanied belongings, by
a. air, embarking.
b. a contract carriage.
c. ropeway, cable car or aerial tramway.
8. Services provided to Government, a local authority or a governmental authority by way of-
a. carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or
b. repair or maintenance of a ship, boat or vessel or an aircraft
9. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –
a. as a trade union.
b. for the provision of carrying out any activity which is exempt from the levy of service tax.
c. up to an amount of five thousand rupees.
10. Services by the following persons in respective capacities –
b. authorised person.
c. mutual fund agent.
e. selling or marketing agent.
f. selling agent.
g. business facilitator.
h. sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt.
11. Services received from a provider of service located in a non- taxable territory by
a. Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession.
b. an entity registered under section 12AA.
c. a person located in a non-taxable territory.
12. Services of public libraries by way of lending of books, publications or any other knowledge- enhancing content or material.
13. Services by Employees’ State Insurance Corporation to persons governed under the Employees’ Insurance Act, 1948 (34 of 1948).
14. Services by way of transfer of a going concern, as a whole or an independent part thereof;
15. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;
16. Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution.
The author is a MBA (Finance), M. Com (Finance) and working as internal auditor with a leading manufacturing concern.