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MEGA EXEMPTIONS FROM SERVICE TAX –NOTIFICATION NO.25/2012 – Service Tax

MEGA EXEMPTIONS FROM SERVICE TAX –NOTIFICATION NO.25/2012  :

Central Government exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the Finance Act ,1994,namely :-

(i) Services provided to  the  UN or a specified  international organizations (Entry -1 of Notification No 25/2012-ST ) like W.H.O ,I.L.O,IMF ,UNESCO etc.

(ii) Health care services  (Entry -2 of Notification No 25/2012-ST )

  • Health care services by- (Entry -2 of Notification No 25/2012-ST )

(i) a clinical establishment

(ii) an authorized medical practitioner or

(iii) para-medics

  • Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation(Entry -2A of Notification No 25/2012-ST )
  • Services provided by operators of the common Bio medical Waste treatment Facility to a clinical establishment by way of treatment or disposal of bio medical waste or the processes incidental thereto. (Entry -2B of Notification No 25/2012-ST )

 

  • Services by a Veterinary clinic in relation to health care of animals or birds . (Entry -3 of Notification No 25/2012-ST )

(iv) Services by an entity registered under section 12AA of I.T Act by way of charitable activities. (Entry -4 of Notification No 25/2012-ST )

 

(v)Religious Services (Entry -5 of Notification No 25/2012-ST )

 

  • Services by a person by way of -Renting of precincts of a religious place meant for general public or conduct of any religious ceremony (Entry -5 of Notification No 25/2012-ST )
  • Services by a specified organization in respect of a religious pilgrimage facilitated by the ministry of external affairs of the GOI under bilateral agreement. (Entry -5A of Notification No 25/2012-ST )

 

(vi) Legal Services:

  • Services provided by an Arbitral Tribunal to any person other than a business entity or a business entity with a turnover up to Rs.10 lakh in the immediately preceding financial year. (Entry -6A of Notification No 25/2012-ST )

 

  • Services provided by an Individual as an Advocate or a Partnership firm of Advocates by way of legal services to – (Entry -6B of Notification No 25/2012-ST )

–An Advocate or Partnership Firm of Advocates providing legal service

–Any person other than a business entity or

–A business entity with a turnover up to Rs.10 lakhs in the preceding financial year.

  • Service provided by a person represented on an arbitral tribunal to an arbitral tribunal. (Entry -6C of Notification No 25/2012-ST )

 

(vii) Services by way of training or coaching in recreational activities relating to Arts, Culture, or sports(Entry -8 of Notification No 25/2012-ST )

(viii) Education related Services –

  • Services provided by an educational institution to its students ,faculties  and staff (Entry -9 of Notification No 25/2012-ST )

 

  • With effect from 11.07.2014 only the following specified services provided to an educational institution ( i.e. Preschool Educational and education up to higher secondary school or   equivalent OR Education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force  OR Education as part of an approved vocational education course)  have been exempted from tax : (Entry -9 of Notification No 25/2012-ST )

–Transportation of students ,faculties and staffs

— Catering, including any mid-day meals scheme sponsored by the Government

— Security or cleaning or housekeeping services performed in such educational  institution

— Services relating to admissions admission to or conduct of examination by such institution.

Note- 1.Service tax exemption shall not be available for auxiliary educational services or renting of Immovable Property services provided by an educational institution in respect of education.

 

  • Services provided by NSDC set up by GOI , Service provided by Sector Skill Council(SKC ) approved by NSDC , Service provided by an assessment agency approved by the SKC or the NSDC , Service provided by a Training Partner which is approved by NSDC or the SKC in relation to  : (Entry -9A of Notification No 25/2012-ST )

–National Skill Development Program me implemented  by NSDC OR

–A Vocational Skill Development Course under the National Skill Certification    and Monetary Reward Scheme or

— any  other  scheme implemented by NSDC

(ix)Sports related services –

  • Services provided to a recognized sports body by an individual as a player ,referee ,umpire, coach or team manager for participation in a sporting event organized by a recognized sports body OR by another recognized sports body. : (Entry -10 of Notification No 25/2012-ST )
  • Services by way of sponsorship  of sporting events organized (Entry -11 of Notification No 25/2012-ST )

 

  • by a National Sports Federation or its affiliated federations where the participating teams or individuals represent any district ,state ,zone or country.
  • By a Association of Indian Universities, Inter –University sports board ,School Games federation of India all India sports council for the deaf, Paralympic committee of India or Special Olympics Bharat.
  • By Central Civil Services Cultural and sports board
  • As part of national games ,by Indian Olympic Association or
  • Under Panchayay Yuva Kreeda aur khel abhhiyan ( PYKKA ) Scheme

 

(xii)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 Entry -12 of Notification No 25/2012-ST )

— a civil structure or any other original works meant predominantly  for use other than for commerce, industry, or any other business or profession;

— a historical monument ,archaeological site or remains of national importance, archaeological excavation ,or antiquity specified under the ancient monuments and archaeological sites and remains act 1958.

— a structure meant predominantly for use as an educational or a clinical or an art /culture establishment.

—  canal ,dam, or other irrigation works

—  pipeline condult or plant for water supply, water treatment or sewerage treatment or disposal

— a residential complex predominantly meant for self use or use of employees or other persons specified in the Explanation 1 to clause 44 of section 65B of the said Act.

(xiii)Services provided by way of construction, erection, commissioning, installation, completion, fitting out ,repair, maintenance  renovation or alteration of (Entry -13 of Notification No 25/2012-ST )

–  a road ,bridge, tunnel, or terminal for road transportation

– A civil structure  for use by general public or any other original works pertaining to a scheme under Rajiv Awass  Yojana  or J.Nehru National Urban renewal mission

—  a building owned by an entity registered under section 12AA of I.T Act and meant predominantly for religious use by general public.

— a pollution control or effluent treatment plant except located as part of a factory

–a structure meant for funeral burial or cremation of deceased.

(xiv)Services by way of construction ,erection ,commissioning or installation of original works pertaining to (Entry -14 of Notification No 25/2012-ST )

— an airport or railways ,including monorail or metro

—  a single residential unit otherwise than as a part of a residential complex.

—  Low cost houses up to a carpet area of 60 square meters per house  in a housing project approved by a competent authority empowered under the scheme of Affordable Housing in Partnership framed by Ministry of Housing AND Urban Poverty alleviation, GOI

— Post –harvest storage infrastructure for agricultural produce including a cold storage for such purposes. Or

— Mechanized food grain handling system , machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages.

(xv) Services provided by way of temporary transfer or permitting the use or enjoyment of a            copyright,-

  • Covered under clause (a) of sub-section (1) of section 13 of the Copyright Act ,1957(14 of 1957),relating to original literary , dramatic ,musical or artistic works ;or
  • Of cinematograph films for exhibition in a cinema hall or cinema theatre;

(xvi)  Services by a performing artist in folk or classical art forms of (i) music  ,or (ii) dance ,or (iii)theatre ,excluding services provided by such artist as a brand ambassador;

(xvii) Services by way of collecting or providing news by an independent journalist, press trust of India or United News of India;

(xviii) Services by way of renting of a hotel, inn ,guesthouse, club Or  campsite, by whatever name called for residential or lodging purposes, having declared tariff  of a unit of accommodation below one thousand rupee per day or equivalent;

(xix) Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having(i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year and (ii) a license to serve alcoholic liquor.

(xix)  Services provided in relation to a food or beverages by a canteen  maintained in a factory covered under the Factories Act ,1948 having the facility of air- conditioning or central air-heating at any time during the year;

(xx) Services by way of transportation by rail or vessel to one place in India to another of the following goods-

  • Relief materials meant for victims of natural or manmade disaster, calamities. accidents or mishap;
  • Defense or military equipments;
  • Newspaper or magazines registered with the registrar of newspapers;
  • Railway equipments or materials;
  • Agricultural produce;
  • Foodstuff including flours ,tea, coffee ,jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages or ;
  • Chemical fertilizer, organic manure and oil cakes;
  • Cotton, ginned or baled;

Note- Non-exempted goods transported by Rail taxable with an abatement of 70%

(xxi)  Services provided by a goods transport agency, by way of transport in a goods carriage of,-

  • Agricultural produce;
  • Goods, where gross amount charged for the transportation of goods on a consignment in a single carriage does not exceed one thousand five hundred rupees;
  • where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty ;
  • Foodstuff including flours, tea, coffee, jaggery. sugar, milk products, salt and edible oil ,excluding alcoholic beverages;
  • Chemical fertilizer, organic manure. Oil cakes;
  • Newspaper or magazines registered with the Registrar Of Newspapers;
  • relief materials meant for victims of natural or manmade disasters ,calamities, accidents or mishap; or
  • defense or military equipments
  • Cotton, ginned or baled;

(xxii) Services by way of giving on hire –

  • to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
  • to a goods transport agency ,a means of transportation of goods;

(xxiii) Transport of passengers, with or without accompanied belongings, by-

  • air, embarking from or terminating in an airport located in the state of Arunachal Pradesh ,Assam, Manipur, Meghalaya, Mizoram, Nagaland , Sikkim, or Tripura or at Bagdogra located in west Bengal;
  • non air conditioned contract carriage other than radio taxi ,for transportation of passengers, excluding tourism, conducted tour, charter or hire, or
  • ropeway, cable or aerial tramway;

(xxiv)  Services of general insurance business provided under following schemes-

  • Hut insurance scheme;
  • Cattle insurance under Swarnajayanti Gram Swarozgar Yojna( earlier known as integrated rural development programmme);
  • Scheme for insurance of tribal’s;
  • Janata personal accident policy and gramin accident policy;
  • Group personal accident policy for self employed woman ;
  • Agricultural pump set and failed well insurance;
  • Premia collected on export credit insurance
  • Weather based crop insurance scheme or the modified national agricultural insurance scheme, approved by the government of India and implemented by the Ministry of Agriculture;
  • Jan Arogya Bima policy;
  • National agriculture insurance scheme(Rashtriya Krishi Bima Yojana);
  • Pilot scheme on seed crop insurance;
  • Central sector scheme on cattle insurance;
  • Universal health insurance scheme;
  • Rashtriya Swasthya Bima Yojana; or
  • Coconut palm insurance scheme:

(xxv)  Services provided to government ,local authority or  a government authority by way of-

  • water supply, public health, sanitation , solid waste management or slum improvement and up gradation ; or
  • repair or maintenance of a vessel;

(xxvi)  Services of life insurance provided under following schemes-

  • Janashree bima yojana(JBY); or
  • Aam Aadmi bima yojana( AABY)
  • Life micro- insurance product as approved by the Insurance regulatory and development authority, having maximum amount of cover of fifty thousand rupee,

(xxvii) Services provided by an incubate up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-

  • The total turnover has not exceeded fifty lakh rupees during the preceding financial year;
  • A period of three years has not been elapsed from the date of entering into an agreement as an incubate;

Note – “INCUBATEE” means an entrepreneur located within the premises of a Technology Business Incubator (TBI) OR Science and Technology Entrepreneurship Park (STEP) .

(xviii)  Services by an unincorporated body or a nonprofit 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-

  • As a trade union;
  • For the provision of carrying out any activity which is exempt from the levy of service tax;
  • Up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;

(xxix)  Services by the following persons in respective capacities-

  • Sub-broker of an authorized person to a stock broker;
  • Authorized person to a member of a commodity exchange;
  • Mutual fund agent to a ,mutual fund or asset management company;
  • Distributor to a mutual fund or asset management company;
  • Selling or marketing agent of lottery tickets to a distributor or a selling agent;
  • Selling agent or a distributor of SIM cards or recharge coupon vouchers;
  • business facilitator or a business correspondent to a banking company or an insurance company in rural areas; or
  • sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;

(xxx)  Carrying out an intermediate production process as a job work in relation to-

  • agriculture, printing or textile processes
  • cut and polished diamonds or gem stones ; or plain and studded jewellery of gold and other precious materials, falling under chapter71 of the Central Excise Tariff act ,1985(5 of 1986);
  • any goods on which appropriate duty is payable by the principal manufacturer; or
  • processes of electroplating, zinc plating, anodizing, heat treatment, powder coating ,painting, including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines up to an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to a condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year;

(xxxi)  Services by an organizer to any person in respect of a business exhibition held outside India;

(xxxii) Services by way of making Telephone calls from – Departmentally run public telephone , free telephone at airports and hospitals were no bills are issued and guaranteed public telephone operating only for local calls.

(xxxiii)Services by way of slaughtering of bovine animals.

(xxxiv) Services received from a provider of services located in a non-taxable territory by –

  • 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,
  • An entity registered under section 12AA of I.T Act,1961 for the purpose of providing charitable activities or
  • A person located in a non-taxable territory .

(xxxv) Services of public libraries by way of lending of books ,publications or any other knowledge enhancing content or material.

(xxxvi) Services by ESIC to persons governed under the ESI Act ,1948.

(xxxvii) Services by way of transfer of a going concern ,as a whole or an independent part thereof.

(xxxviii)Services by way of public conveniences such as provision of facilities of bathroom ,washrooms ,lavatories ,urinals or toilets.

(xxxix) Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under Article 243W of our constitution.

(xxxx) Services by way of loading ,unloading ,packing ,storage or warehousing of rice ,cotton –ginned or baled.

(xxxxi) Specialized financial services received by RBI from outside India –global financial institutions  in the course of management of Foreign Exchange Reserves e.g. External Asset Management , Custodial Services ,Securities Lending Services etc have been exempted.

(xxxxii) Services provided by a  Indian tour operator to a foreign tourist in relation to a tour conducted wholly outside India.

Service Tax | Ruhi Sen |

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