Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Exemption from Service Tax

Member (Account Deleted) Guest , 06 December 2011  
  Share


Section 93. Power to grant exemption from service tax.

(1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon.

(2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt any taxable service of any specified description from the payment of whole or any part of the service tax leviable thereon, under circumstances of exceptional nature to be stated in such order.

I. GENERAL EXEMPTIONS WHICH ARE APPLICABLE FOR ALL SERVICES

Notification No.

Exemption

Remarks/ Conditions

Notification No. 16/2002 ST, dated 02.08.2002

All the taxable services provided by any person to the United Nations or an International Organisation, are exempt from levy of service tax.

International Organisation means an Organisation declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 to which the provisions of the   said Act apply.

Notification No. 22/2006 ST dated 31.05.2006

All taxable services to any person, by Reserve Bank of India are exempt from levy of service tax.

Notification No. 22/2006 ST dated 31.05.2006

Taxable services provided or to be provided by any person, to Reserve Bank of India when the service tax for such services is to be paid by Reserve Bank of India under section 68(2) read with rule 2 of the Service Tax Rules, 1994 are exempt from levy of service tax.

Notification No. 22/2006 ST dated 31.05.2006

Taxable services received in India from outside India by Reserve Bank of India under section 66A of the Finance Act, 1994 are exempt from levy of service tax.

Notification No. 9/2007 ST dated01.03.2007

All taxable services provided or to be provided by Technology Business Incubators (TBI)/Science and Technology Entrepreneurship Parks (STEP) are exempt from levy of service tax.

Conditions

1.       STEP or TBI shall be recognized by National Science and Technology Entrepreneurship Board (NSTEBD) of the Department of Science & Technology.

2.       STEP or TBI, shall furnish the requisite information containing the details of the incubator along with the information received from each incubatee to the concerned Assistant/Deputy Commissioner of Central Excise before availing the exemption; and

3.       STEP or TBI shall thereafter furnish the information in the formats mentioned above in the same manner before the 30th day of June of each financial year.

Notification No. 10/2007 ST dated 01.03.2007

All taxable services provided or to be provided by an (incubatee) entrepreneur located within the premises of TBI/ STEP have been exempted from the levy of the service tax.

Conditions

(a)    STEP or TBI shall be recognized by National Science and Technology Entrepreneurship Board (NSTEBD) of the Department of Science & Technology.

(b)   The entrepreneur enters into an agreement with the TBI or the STEP as an incubatee, to enable himself to develop and produce hi-tech and innovative products; and

(c)    The total business turnover of such entrepreneur does not exceed Rs.50 lakh during the previous financial year.

Further, the exemption contained in this notification shall apply for a period of 3 years from the date on which such entrepreneur enters into an agreement with TBI or STEP.

Notification No. 12/2007 ST dated 01.03.2007

Taxable services provided under an agreement, by any person to other person who has the right to authorise any person to exhibit cinematograph film are exempt from levy of service tax.

Conditions

1.       Service provided is in relation to the delivery of the content of the cinematograph film; and

2.       Content of such film, being in digitized form, after its encryption, is transmitted directly to a cinema theatre for exhibition through the use of satellite, microwave or terrestrial communication line and not by any physical means including CD and DVD.

Notification No. 33/2007 ST dated 23.05.2007

All taxable services provided by any person, for the official uses of a foreign diplomatic mission or consular post in India are exempt from levy of service tax.

Procedure for availing the exemption is specified in the notification.

Circular No. 96/7/2007 ST dated 23.08.2007

Service tax shall not be leviable on fee collected by public authorities while performing statutory functions/duties under the provisions of a law.

However, if such authority performs a service, which is not in the nature of statutory activity and the same is undertaken for a consideration not in the nature of statutory fee/levy, then in such cases, service tax would be leviable, if the activity undertaken falls within the ambit of taxable services.


QUICK REVISION CHARTS:

Notification No. 16/2002 ST, dated 02.08.2002

Notification No. 22/2006 ST dated 31.05.2006

Notification No. 22/2006 ST dated 31.05.2006

Notification No. 22/2006 ST dated 31.05.2006

Notification No. 9/2007 ST dated01.03.2007

Notification No. 10/2007 ST dated 01.03.2007

Notification No. 12/2007 ST dated 01.03.2007

Notification No. 33/2007 ST dated 23.05.2007

Circular No. 96/7/2007 ST dated 23.08.2007

Notification  No. 9/2009

Exemption by way of Refund

Exemption

All taxable services

à         specified in section 65(105) of Finance Act, 1944; and

à         which are provided in relation to the authorised operations in a Special Economic Zone; and

à         such services are received by developer or units of SEZ, whether or not the said taxable services are provided inside the Special Economic Zone.

Would be exempt from service tax.

Conditions

(a) Developer of SEZ or units of SEZ shall get the list of services required in relation to the authorised operations approved from the Approval Committee (‘specified services’); - [Operations are authorized and services used in relation to these authorized operations should be approved.]

(b) Actual use - Developer of SEZ or units of SEZ claiming the exemption actually uses the specified services in relation to the authorised operations in the SEZ.

(c) Specified services are USED in relation to the authorised operations IN THE SPECIAL ECONOMIC ZONE except for the services consumed wholly within the SEZ.

(d) Developer or units of Special Economic Zone claiming the refund has ACTUALLY PAID the service tax on the specified services;

(c) Specified services are CONSUMED WHOLLY WITHIN THE SEZ.

(d) No such requirement.

(e) No CENVAT credit of service tax paid on the specified services used in relation to the authorized operations in the Special Economic Zone has been taken under the CENVAT Credit Rules, 2004;

(f) Double benefit will not be available- exemption or refund of service tax paid on the specified services used in relation to the authorized operations in the Special Economic Zone shall not be claimed except under this notification.

(g) Proper accounts - Developer or unit of SEZ shall maintain proper accounts of receipt and utilization of the taxable services for which exemption is claimed.

Other Conditions/ Procedure

(a) Person liable to pay service tax shall pay service tax as applicable on the services provided to developer or units of SEZ.

(b) Developer or units of SEZ shall claim the exemption by filing a claim for refund;

(c) Claim for refund shall be filed to jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise(A.C./D.C.), as the case may be;

(d) Developer or units of SEZ who is not registered under Central Excise Act, 1944 or the Service tax legislation shall, prior to filing a refund claim under this notification, file a declaration in the specified Form(annexed in the notification) with the respective jurisdictional AC/DC of Central Excise; Such AC/DC shall, after due verification, allot a service tax code (STC) number to the developer or units of SEZ within 7 days from the date of receipt of the said Form;

(f) Time-limit for filing refund - Claim for refund shall be filed, within 6 months or such extended period as the AC/DC shall permit, from the date of actual payment of service tax by such developer or unit to service provider;

(g) the refund claim shall be accompanied by the following documents, namely:

(i) Copy of the list of specified services as approved by the Approval Committee;

(ii) documents for having paid service tax;

(iii) a declaration by Developer or unit, that “such service is received by him in relation to authorised operation in Special Economic Zone”.

(h) AC/DC after satisfying himself that the said services have been actually used in relation to the authorised operations in the Special Economic Zone, refund the service tax paid;

(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of service tax legislation.

--

Exemption for small service providers – Notification No.6/2005 ST dated 01.03.2005[1]

Service tax is fully exempt in respect of the taxable services of aggregate value not exceeding Rs.10,00,000 in any financial year. The exemption is however, subject to certain conditions.

Conditions for claiming this exemption

1. No Brand name of another person- This exemption would not apply in relation to services provided by person using the brand name or trademarks of another person.

2. Not applicable to persons specified under section 68(2) - This exemption would not apply in cases where the service tax is paid by persons specified under section 68(2). Like in case of services received from outside India (reverse charge).

3. Service provider has the option not to avail the exemption contained in this notification. Such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year.

4. Service provider shall not avail the CENVAT credit of service tax paid on any input services used for providing the taxable service, for which exemption is availed of.

5. Service provider shall not avail the CENVAT credit on capital goods received in the premises of provider of such taxable service during the period in which the service provider avails exemption from payment of service tax under this notification.

6. Service provider shall avail the CENVAT credit only on such inputs or input services

a. Which are received, on or after the date on which the service provider starts paying service tax; and

b. Which are used for the providing taxable services for which service tax is payable;

7. Where Service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services; and

8. Aggregate value of taxable services rendered by Service provider shall not exceed Rs. 10 Lacs in the preceding financial year.

Exemption to goods and materials sold by service provider to recipient of service - Notification No. 12/2003 ST, dated 20.6.2003

So much of the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the recipient of service is exempt from service tax leviable thereon.

Conditions

(a) There shall be a documentary proof specifically indicating the value of the said goods and materials.

(b) No credit of duty paid on such goods and materials sold, has been taken under the provisions of the CENVAT Credit Rules, 2004; or

(c) Where such credit has been taken by the service provider on such goods and materials, such service provider has paid the amount equal to such credit availed before the sale of such goods and materials.

Question

Sky Gourmet supplies food and beverages to Kingfisher Airlines at a value of Rs. 100000 (Service tax extra). Value of food is Rs. 30000. On what value shall service tax be payable and why?

Answer

Total Bill                                                     100000

Less: Value of food [Goods]                       (30000)

Value of Services                                        70000

Service Tax levied @ 10.30%       7210

Question

M/s OLD Tyres limited purchases second hand tyres from market. They repair them and sell them again. He purchased tyres worth Rs. 4000 and sold them after servicing them at Rs. 5500. He separately mentions the amount of service tax in the Bill. On what value shall service tax be payable and why?

Answer

Total Bill                                                         5500

Less: Value of Tyres[Goods]                           (4000)

Value of Services                                            1500

Service Tax levied @ 10.30%       154.50

Circular No 233/2/2003-CX.4 dated 3-3-2006- Exemption under notification no. 12/2003 is available only in case of supply of goods for which there is a separate documentary evidence but no exemption would be available in respect of goods consumed during the provision of services.

Illustration

Chartered Accountant giving opinion to Reliance limited for Rs. 10 Lacs. In the Bill he separately shows

Rs. 20 as cost of pens used;

Rs. 200 as cost of paper used;

Rs. 300 as electricity bill of computers.

Service tax would be chargeable on Rs. 10 Lacs as these are goods and services consumed during the provision of services.

II. SPECIFIC EXEMPTIONS WHICH ARE APPLICABLE FOR FEW SPECIFIED SERVICES

Exemption of specified services received by an exporter and used for export of goods – Notification No. 17/2009 dated 07.07.2009

Taxable services specified in column (3) (‘specified services’) received by an exporter and used for export of goods (‘said goods’), are exempt from payment of service tax levied under section 66 and section 66A.

Sr.

No.

Classification

Taxable Services which are exempt

Conditions

1

2

3

4

1.

General insurance business- 65(105)(d)

Service provided to an

exporter by an insurer (including a reinsurer) carrying on general insurance business in relation to insurance of said goods.

Exporter shall submit document issued by the insurer, including reinsurer, for payment of insurance premium and the document shall be specific to export goods and shall be in the name of the exporter.

2.

Port Services- 65(105)(zn)

Service provided by a port[2](or any person authorised by the port) in respect of the export of said goods.

3.

Technical testing and analysis services- 65(105)(zzh)

Service provided by a technical testing and analysis agency, in relation to technical testing and analysis of said goods.

4.

Technical inspection and certification services- 65(105)(zzi)

Service provided by a technical inspection and certification agency in relation to inspection and certification of export goods.

5.

Other Port Services- 65(105)(zzl)

Service provided by other port[3](or any person authorised by that port) in respect for export of said goods.

6.

Transport of goods by road in a goods carriage- 65(105)(zzp)

(i) Service provided for

transport of said goods

from the inland container depot to the port of export;

(ii) Service provided to an exporter in relation to transport of export goods directly from the place of removal, to inland container depot or port or airport, as the case may be, from where the goods are exported.

(i) Exporter shall certify that the benefit of exemption provided vide notification number 18/ 2009 - S.T. has not been claimed; and

(ii) those specified in the invoice of exporter relating to export goods, are specifically mentioned in the lorry receipt and the corresponding shipping bill.

7.

Transport of goods in containers by rail- 65(105)(zzzp)

(i) Service provided for transport of said goods from the inland container depot to the port of export, and

(ii) services provided to an exporter in relation to transport of export goods directly from the place of removal to inland container depot or port or airport, as the case may be, from where the goods are exported.

Invoice issued by the exporter in relation to export goods shall indicate the inland container depot or port or airport from where the goods are exported.

8.

Cleaning activity services- 65(105)(zzzd)

Specialized cleaning services namely disinfecting, exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter.

9.

Storage or warehouse keeper services- 65(105)(zza)

Service provided for storage and warehousing of said goods.

10.

Courier agency services- 65(105)(f)

Service provided by a

courier agency to an exporter in relation to transportation of time sensitive documents, goods or articles relating to export, to a destination outside India.

(i) The receipt issued by the courier agency shall specify the importer-exporter code, (IEC) number of the exporter, export invoice number, nature of courier, destination of the courier including name and address of the recipient of the courier; and

(ii) exporter produces documents relating to the use of courier service to export goods.

11.

Custom house agent services- 65(105)(h)

Service provided by a

custom house agent in

relation to export goods exported by the exporter.

Exporter shall produce,-

(i) invoice issued by custom house agent which specifies:

(a)    number and date of shipping bill;

(b)   number and date of the invoice issued by the exporter relating to export goods;

(c)    details of all the charges, whether or not reimbursable, collected by the custom house agent from the exporter in relation to export goods;

(ii) details of other taxable services provided by the said custom house agent and received by the exporter, whether or not relatable to export goods.

12.

Banking and other financial services rendered by a banking company or a financial institution- 65(105)(zm)

(i) Service provided in relation to collection of export bills;

(ii) Service provided in relation to advising export letters of credit such as advising commission, advising amendment and confirmation charges.

(iii) Service of purchase or sale of foreign currency, including money changing provided to an exporter in relation to export goods.

13.

Foreign exchange broker- 65(105)(zzk)

Service of purchase or

sale of foreign currency provided to an exporter in relation to export goods.

14.

supply of tangible goods for use services- 65(105)(zzzzj)

Service of supply of tangible goods for use, without transferring right of possession and effective control of tangible goods, provided to an exporter in relation to goods exported by the exporter.

15.

Clearing and forwarding agent services- 65(105)(j)

Service provided by a clearing and forwarding agent in relation to export goods exported by the exporter.

Exporter shall produce:

(i) Invoice issued by clearing and forwarding agent for providing services specified in column(3) specifying:

(a)                Number and date of shipping bill;

(b)               Description of export goods;

(c)                Number and date of the invoice issued by the exporter relating to export goods;

(d)               Details of all the charges, whether or not reimbursable, collected by the clearing and forwarding agent from the exporter in relation to export goods;

(ii) Details of other taxable services provided by the said clearing and forwarding agent and received by the exporter, whether or not relatable to export goods.

16.

Classified under

any sub-clause

of clause (105)

of section 65.

Payment of service tax paid on services commonly known as terminal handling charges.

17.

Services of transport of coastal goods, goods through national waterway or inland water. 65(105)(zzzzl)

Services provided for transport of export goods through national waterway, inland water and coastal shipping.

The exporter shall:

(a)                Produce the Bill of Lading or a Consignment Note or a similar document by whatever name called, issued in his name;

(b)               Produce evidence to the effect that the said transport is provided for export of relevant goods.

A. General points to be noted for all the above exemptions:

1.    The exemption shall be claimed by the exporter for the specified service received and USED BY HIM FOR EXPORT OF THE SAID GOODS.

2. The exemption claimed by the exporter shall be provided by way of REFUND of service tax paid.

3. The exporter claiming the exemption has actually PAID the service tax on the specified service to its provider.

4. No CENVAT credit of service tax paid has been taken under the CENVAT Credit Rules, 2004.

5. The person liable to pay service tax under section 68 of the Finance Act, 1994 shall not be eligible to claim exemption for the specified service.

6. The manufacturer-exporter, who is registered as an assessee under the Central Excise Act, 1944 or the rules made there under, shall claim the exemption by filing a claim for refund of service tax paid on specified service to the Assistant Commissioner/Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, in Form A-l.

7. The exporter who is not so registered under the provisions referred to in point (6) above, shall before filing a claim for refund of service tax, file a declaration in Form A-2 with the Assistant Commissioner/Deputy Commissioner of Central Excise, as the case may be, having the jurisdiction over the registered office or the head office, as the case may be, of such exporter.

8. The Assistant Commissioner/Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the exporter [referred to in point (7) above] within seven days from the date of receipt of the said Form A-2.

9. The exporter, referred to in point (6) or (7) , shall file the claim for refund of service tax to the Assistant Commissioner/Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture, registered office or the head office, as the case may be, of such exporter in Form A-l.

10. The claim for refund shall be filed within one year from the date of export of the said goods.

11.For each taxable service specified in column(3) of the Schedule above, the exporter shall enclose all the documents specified in corresponding entry in column (4) of the said Schedule and the Form A-l with the claim of refund.

12.  No refund claim shall be allowed if the same is for an amount less than Rs. 500.

13. Where -

(a)  Total amount of refund sought under a claim is upto 0.25% of the total declared free on board value of export;

(b)  The exporter is registered with Export Promotion Council sponsored by the Ministry of Commerce or the Ministry of Textiles;

(c)   Subject to the provisions of (a) and (b) above, each document specified in clause (b) and in column (4) of the said Table shall be enclosed with the claim;

(d) invoice, bill or challan, or any other document issued in the name of the exporter, showing payment for such service availed and the service tax payable shall be submitted in original after being certified in the manner specified in sub-clauses (e) and (f);

(e) the exporter is a proprietorship concern or partnership firm, the documents enclosed with the claim shall be certified by the exporter himself and where the exporter is a limited company, the documents enclosed with the claim shall be certified by the person authorised by the Board of Directors;

(f) the documents enclosed with the claim shall contain a certificate from the exporter or the authorised person to the effect that specified service, to which the document pertains, has been received, the service tax payable thereon has been paid and the specified service has been used for export of goods under the shipping bill number;

14. Where the amount of refund sought under a claim is more than 0.25% of the declared free on board value of export, such certification, shall be done by the Chartered Accountant who audits the annual accounts of the exporter for the purposes of the Companies Act, 1956 or the Income Tax Act, 1961, as the case may be.

B. How will Assistant Commissioner/Deputy Commissioner of Central Excise check the accuracy of refund claimed by Exporter?

The Assistant Commissioner/Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself, -

(i) that the claim filed is complete in every respect;

(ii) that all the documents requiring certification have been filed after due certification;

(iii) about the arithmetical accuracy of the claim, shall refund the service tax paid on the specified service within a period of 1 month from the receipt of said claim.

However, where the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise has reason to believe that the claim, or the enclosed documents are not in order or that there is a reason to deny such refund, he may, after recording the reasons in writing, take action, in accordance with the provisions of the said Act and the rules made there under.

C. In what circumstances would refund of service tax be demanded back by service tax authorities?

Where any refund of service tax is paid to an exporter but the sale proceeds in respect of the said goods have not been realised by or on behalf of the exporter in India within the period allowed under the Foreign Exchange Management Act, 1999, such service tax refunded shall be recoverable under the provisions of the said Act and the rules made there under, as if it is a recovery of service tax erroneously refunded.

Notification No. 18/2009 – ST dated 07.07.2009 – Services in relation to ‘transport of goods by road’ and ‘commission paid to foreign agents’ exempted from service tax subject to certain conditions

All taxable services specified in column (3) (‘specified services’) received by an exporter and used for export of goods (‘said goods’), shall be exempt from levy of service tax under section 66 and section 66A.

Serial

No.

Classification

Description of the taxable service

Conditions

1

2

3

4

1.

Transport of goods by road in a goods carriage- 65(105)(zzp)

Service provided to an exporter for transport of the said goods by road from any container freight station or inland container depot to the port or airport, as the case may be, from where the goods are exported; or

Service provided to an exporter in relation to transport of said goods by road directly from their place of removal, to an inland container depot, a container freight station, a port or airport, as the case may be, from where the goods are exported.

The exporter shall have to produce the consignment note, by whatever name called, issued in his name.

2.

commission paid to foreign agents -65(105)(zzb)

Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him.

(1) The exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill or bill of export, as the case may be.

(2)The exemption shall be limited to 1% of the free on board value of export goods for which the said service has been used.

(3) The exemption shall not be available on the export of canalized item, project export, or export financed under lines of credit extended by Government of India or EXIM Bank, or export made by Indian partner in a company with equity participation in an overseas joint venture or wholly owned subsidiary.

(4) The exporter shall submit with the half yearly return after certification of the same as specified in clause (g) of the proviso together with:

(i) the original documents showing actual payment of commission to the commission agent; and

(ii) a copy of the agreement or contract entered into between the commission agent located outside India and the exporter in relation to sale of export goods, outside India.

General conditions to be satisfied for availing the above exemption:-

(a) Exemption shall be available to an exporter who,-

(i) informs the Assistant Commissioner/Deputy Commissioner of Central Excise, having jurisdiction over the factory or the regional office or the head office, as the case may be, in Form EXP1, before availing the said exemption;

(ii)   is registered with an export promotion council sponsored by the Ministry of Commerce or the Ministry of Textiles, as the case may be;

(iii) is a holder of Import-Export Code Number;

(iv) is registered under section 69 of the said Act;

(v) is liable to pay service tax under section 68(2), read with rule 2(1)(d)(iv) or rule 2(1)(d)(v) of the Service Tax Rules, 1994, for the specified service;

(b) the invoice, bill or challan, or any other document issued by the service provider to the exporter, on which the exporter intend to avail exemption, shall be issued in the name of the exporter, showing that the exporter is liable to pay the service tax in terms of item (v) of clause (a);

(c) the exporter availing the exemption shall file the return in Form EXP2 every 6 months of the financial year, within15days of the completion of the said 6 months;

(d) the exporter shall submit  the half yearly return,  with the documents in original specified in clause (b) and the certified copies of the documents specified in column (4) of the said Schedule;

(e) the documents enclosed with the return shall contain a certification from the exporter or the authorised person, to the effect that taxable service to which the document pertains, has been received and used for export of goods by mentioning the specific shipping bill number on the said document.

(f) where the exporter is a proprietorship concern or partnership firm, the documents enclosed with the return shall be certified by the exporter himself and where the exporter is a limited company, the documents enclosed with the return shall be certified by the person authorised by the Board of Directors;

(g) where the amount of service tax in respect of the service specified against serial No. 2 of the Schedule exceeds 1% of the free on board value of the export then, the amount in excess of the said 1% shall be paid within the period specified under rule 6 of the Service Tax Rules, 1994


Exemption to services provided by a person located outside India in relation to booking of accommodation for a customer located outside India in a hotel in India – Notification No. 14/2008 ST dated 01.03.2008

The taxable services provided by a person, having his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, and which is received by a hotel located in India, in relation to booking of an accommodation in the said hotel, for a customer, who has his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India are exempt from whole of the service tax leviable thereon.

Hotel has been defined to mean a place that provides boarding and lodging facilities to public on commercial basis.

III. ABATEMENTS

Notification No. 1/2006-ST dated 01.03.06

Notification No. 1/2006 ST dated 01.03.06 provides for abatements from gross value in case of certain specified services. These abatements will be discussed with relevant services.

IV. SOME NOTIFICATIONS IN BULLETED POINTS:

Every year several Exemption Notifications are issued which grants exemption in specific cases. We are not required to know every such notification in detail. Therefore, I have converted all these notifications in small points. Read these points for simple understanding. .[4]

1. Exemption to management, maintenance or repair of roads service - The taxable service provided to any person by any other person in relation to management, maintenance or repair of roads has been exempted from the whole of the service tax leviable thereon. [Notification No. 24/2009 ST dated 27.07.2009]

2. Exemption to certain specified goods transported through national waterway, inland water and coastal shipping - The taxable service provided to any person in relation to the transport of specified goods through national waterway, inland water and coastal shipping has been exempted from whole of the service tax leviable thereon. Examples of goods exempt are Foodstuffs, Petroleum and petroleum products, Fertilizer, Medicine/pharmaceutical products, Defence/ military equipments, Newspaper/magazines etc. The above amendment became effective from 1st September, 2009. [Notification No. 30/2009 ST dated 31.08.2009]

3. Exemption to the business auxiliary service provided by the sub-broker to a stockbroker - The business auxiliary service provided by a sub-broker to a stock-broker in relation to sale or purchase of securities listed on a registered stock exchange has been exempted from the whole of the service tax leviable thereon. [Notification No. 31/2009 ST dated 01.09.2009]

4. Exemption to taxable service provided in relation to manufacture of specified  goods charged to excise duty under Medicinal and Toilet Preparations (Excise  Duties) Act, 1955 -  The business auxiliary service provided by any person, to a client in relation to the  manufacture of pharmaceutical products, medicines, perfumery, cosmetics or toilet  preparations containing alcohol, which are charged to excise duty under Medicinal and  Toilet Preparations (Excise Duties) Act, 1955 has been exempted from the whole of the service tax leviable thereon. [Notification No. 32/2009 ST dated 01.09.2009]

5. Exemption to service in relation to execution of a works contract in respect of canals, other than those primarily used for the purposes of commerce or industry - The works contract service provided in respect of canals, other than those primarily used for the purposes of commerce or industry, has been exempted from the whole of service tax leviable thereon. [Notification No. 41/2009 ST dated 23.10.2009]

6. Exemption to Central and State Seed Testing Laboratories, and Central and State Seed Certification Agencies - Exemption from service tax has been granted to any service provided to any person in relation to the ‘technical testing and analysis service’ and ‘technical inspection and certification service’ provided by Central or State Seed Testing Laboratories, and Central or State Seed Certification Agencies notified under the Seeds Act, 1966. [Notification No. 10/2010 ST dated 27.02.2010].

7. Exemption to transmission of electricity - Exemption from service tax has been provided to the taxable service provided to any person, by any other person for transmission of electricity. [Notification No. 11/2010 ST dated 27.02.2010].

8. Exemption provided to Indian News Agencies subject to specified conditions - Exemption from service tax has been provided to Indian news agencies under ‘online  information and database retrieval service’ and ‘business auxiliary service’ only if such  news agency:-

(i)  is notified as a news agency set up in India solely for collection and distribution of news,

(ii)  is specified under section 10(22B) of the Income Tax Act, 1961, and

(iii) applies its income or accumulates it for collection and distribution of news and does not distribute its income in any manner to its members.

[Notification No. 13/2010 ST dated 27.02.2010]

9. Exemption of outdoor catering service provided by a NGO for Mid-Day Meal Scheme.- Exemption from service tax has been granted to outdoor catering service provided by a Non Government Organisation registered under any Central Act or State Act, under the Centrally assisted Mid-Day Meal Scheme.[ Notification No. 47/2010 - Service Tax, dated 3.09.2010]

10. Exemption to the taxable service provided for distribution of electricity - Exemption from service tax has been granted to any person who is authorized to distribute power under the Electricity Act, 2003, for distribution of electricity.  [Notification No. 32/2010 - Service Tax, dated 22.06.2010]

11. Exemption given to specified sponsorship services for tournaments and championships – Exemption from service tax has been granted in sponsorship services category for following tournaments or championships organized:

(a) By National Sports Federations or Federations affiliated to such National Sports Federations, where the participating teams or individuals represent any District, State or Zone;

(b) By Association of Indian Universities – Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India (for the physically challenged), Special Olympics Bharat (for the mentally challenged);

(c) By Central Civil Services Cultural and Sports Board;

(d) By Indian Olympic Association which are organised as part of National Games

(e) Under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme. [Notification No. 30/2010 - Service Tax, dated 22.06.2010]

12. Exemption to construction of complex when provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv AwaasYojana - Exemption from service tax has been granted to construction of complex service when provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana. [Notification No. 28/2010 - Service Tax, dated 22.06.2010]



[1] Exemption for small service providers has been dealt in detail at the Final level.

[2] "port" has the meaning assigned to it in section 2(q) of the Major Port Trust Act, 1963.

[3] "other port" has the meaning assigned to "port" in section 3(4) of the Indian Ports Act, 1908, but does not include the port defined in section 3(81) of the Indian Ports Act, 1908.`

[4] Notification no.’s need not to be learnt.

"Loved reading this piece by Member (Account Deleted)?
Join CAclubindia's network for Daily Articles, News Updates, Forum Threads, Judgments, Courses for CA/CS/CMA, Professional Courses and MUCH MORE!"






Category Students, Other Articles by - Member (Account Deleted) 



Comments


update