Vide Notification No. 25/2012-Service Tax, dated 20.06.2012
the Central Government has exempted many of the services from the levy of
service tax. This notification is called as Mega Exemption Notification since
the exemption is considerably high. Subsequently many notifications were issued
in relation to mega exemptions. In some notifications the exemption granted
were withdrawn. Through some notifications new services were added in the
exempted list. The following are notifications given amendment to the Notification
No. 25/2012-Service Tax, dated 20.06.2012:
The services newly given exemption vide Notification No.
6/2015 will come effect from 01.03.2015. The list of services that are coming
mega exemption as on date is furnished as below:
1. Services provided to the United Nations or a specified
international organization;
2. (i) Health care services by a clinical establishment, an
authorized
medical practitioner or para-medics;
(ii) Services provided by way of transportation of a patient
in an ambulance, other than those specified in (i) above;
3. Services provided by cord blood banks by way of
preservation of stem cells or any other service in relation to such
preservation;
4. Services provided by cord blood banks by way of
preservation of stem cells or any other service in relation to such
preservation;
5. 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;
6. Services by a veterinary clinic in relation to health care
of animals or birds;;
7. Services by an entity registered under section 12AA of the
Income tax Act, 1961 (43 of 1961) by way of charitable activities;
8. Services by a person by way of-
renting of precincts of a religious place meant for general
public; or
conduct of any religious ceremony;
9. Services by a specified organization in respect of a
religious pilgrimage facilitated by the Ministry of External Affairs of the
Government of India, under bilateral arrangement;
10. 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; or
c). person represented on an arbitral tribunal to an arbitral
tribunal;
11. Services by way of training or coaching in recreational
activities relating to arts, culture or sports;;
12. Services provided,-
by an educational institution to its students, faculty and
staff;
to an educational institution, by way of,-
o transportation of students, faculty and staff;
o catering, including any mid-day meals scheme sponsored by the
Government;
o security or cleaning or house-keeping services performed in
such educational institution;
o services relating to admission to, or conduct of examination
by, such institution
13. 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.
14. 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;
another recognized sports body;
15. Services by way of sponsorship of sporting events
organized,-
by a national sports federation, or its affiliated
federations, where the participating teams or individuals represent any
16[district, State, zone or Country
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 or Special Olympics Bharat;
by Central Civil Services Cultural and
Sports Board;
as part of national games, by Indian Olympic Association;
or
under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA)
Scheme;
16. 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 -
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 (24 of
1958;
canal, dam or other irrigation works;
pipeline, conduit or plant for (i) water supply (ii) water
treatment, or (iii) sewerage treatment or disposal;
17. Services provided by way of construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of,-
a road, bridge, tunnel, or terminal for road transportation
for use by general public;
a civil structure or any other original works pertaining to
a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas
Yojana;
a building owned by an entity registered under section 12
AA of the Income tax Act, 1961(43 of 1961)and meant predominantly for religious
use by general public;
a pollution control or effluent treatment plant, except
located as a part of a factory; or
a structure meant for funeral, burial or cremation of
deceased;
18. Services by way of construction, erection, commissioning,
or installation of original works pertaining to,-
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 competent authority empowered under
the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of
Housing and Urban Poverty Alleviation, Government of India;
post- harvest storage infrastructure for agricultural
produce including a cold storages for such purposes; or
mechanized food grain handling system, machinery or
equipment for units processing agricultural produce as food stuff excluding
alcoholic beverages;
19. 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.
20. Services by an artist by way of a performance in folk or
classical art forms of (i) music, or (ii) dance, or (iii) theatre, if the
consideration charged for such performance is not more than one lakh rupees:
Provided that the exemption shall not apply to service
provided by such artist as a brand ambassador.
21. Services by way of collecting or providing news by an
independent journalist, Press Trust of India or United News of India;
22. Services by a hotel, inn, guest house, club or campsite,
by whatever name called, for residential or lodging purposes, having declared
tariff of a unit of accommodation below one thousand rupees per day or
equivalent
23. Services provided in relation to serving of food or
beverages by a restaurant, eating joint or a mess, other than those having the
facility of air-conditioning or central air-heating in any part of the
establishment, at any time during the year;
24. Services provided in relation to serving of food or
beverages by a canteen maintained in a factory covered under the Factories Act,
1948 (63 of 1948), having the facility of air-conditioning or central
air-heating at any time during the year;
25. Services by way of transportation by rail or a vessel
from one place in India to another of the following goods –
relief materials meant for victims of natural or man-made
disasters, calamities, accidents or mishap;
defence or military equipments;
newspaper or magazines registered with the
Registrar of Newspapers;
railway equipments or materials;
agricultural produce;
milk, salt and food grain including flours, pulses and
rice;
chemical fertilizer, organic manure and oil cakes;
cotton, ginned or baled.
26. 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 transported in a single carriage does not exceed one
thousand five hundred rupees;
goods, where gross amount charged for transportation of all
such goods for a single consignee does not exceed rupees seven hundred fifty;
milk, salt and food grain including flours, pulses and rice
chemical fertilizer, organic manure and oil cakes; ]
newspaper or magazines registered with the Registrar of
Newspapers;
relief materials meant for victims of natural or man-made
disasters, calamities, accidents or mishap; or
defence or military equipments
cotton, ginned or baled.
27. 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;
28. 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 car or aerial tramway;
29. Services provided to Government, a local authority or a
governmental authority by way of -
water supply, public health, sanitation conservancy, solid
waste management or slum improvement and up-gradation; or
repair or maintenance of a vessel;
30. Services of general insurance business provided under
following schemes-
Hut Insurance Scheme;
Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna
(earlier known as Integrated Rural Development Programme
Scheme for Insurance of Tribals
Janata Personal Accident Policy and Gramin Accident Policy;
Group Personal Accident Policy for Self-Employed Women;
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 Agricultural 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;
31. Services of life insurance business 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 rupees
Varishtha Pension Bima Yojana;
32. Services provided by an incubatee up to a total turnover
of fifty lakh rupees in a financial year subject to the following conditions,
namely:-
the total turnover had not exceeded fifty lakh rupees
during the preceding financial year; and
a period of three years has not been elapsed from the date
of entering into an agreement as an incubatee;
33. 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 -
as a trade union;
for the provision of carrying out any activity which is
exempt from the levy of service tax; or
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;
34. Services by the following persons in respective
capacities -
sub-broker or an authorized person to a
stock broker;
authorized 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; or
sub-contractor providing services by way of works contract
to another contractor providing works contract services which are exempt;
35. Carrying out an intermediate production process as job
work in relation to-
agriculture, printing or textile processing;
cut and polished diamonds and gemstones; or plain and
studded jewellery of gold and other precious metals, falling under Chapter 71
of the Central Excise Tariff Act ,1985 (5 of 1986);
any goods excluding alcoholic liquors for human
consumption,] 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 the condition that such
aggregate value had not exceeded one hundred and fifty lakh rupees during the
preceding financial year;
36. Services by an organizer to any person in respect of a
business exhibition held outside India;
37. Services by way of slaughtering of animals;
38. Services received from a provider of service 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 the Income tax
Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or
a person located in a non-taxable territory;
39. Services of public libraries by way of lending of books,
publications or any other knowledge- enhancing content or material;
40. Services by Employees’ State Insurance Corporation to
persons governed under the Employees’ Insurance Act, 1948 (34 of 1948);
41. Services by way of transfer of a going concern, as a
whole or an independent part thereof;
42. Services by way of public conveniences such as provision
of facilities of bathroom, washrooms, lavatories, urinal or toilets;
43. 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.
44. Services by way of loading, unloading, packing, storage
or warehousing of rice, cotton, ginned or baled;
45. Services received by the Reserve Bank of India, from
outside India in relation to management of foreign exchange reserves; 46.
Services provided by a tour operator to a foreign tourist in relation to a tour
conducted wholly outside India
47. Services by operator of Common Effluent Treatment Plant
by way of treatment of effluent;
48. Services by way of pre-conditioning, pre-cooling,
ripening, waxing, retail packing, labeling of fruits and vegetables which do
not change or alter the essential characteristics of the said fruits or
vegetables;
49. Services by way of admission to a museum, national park,
wildlife sanctuary, tiger reserve or zoo;
50. Service provided by way of exhibition of movie by an
exhibitor to the distributor or an association of persons consisting of the
exhibitor as one of its members;
51. Services by way of right to admission to,-
exhibition of cinematographic film, circus, dance, or
theatrical performance including drama or ballet;
recognized sporting event;
award function, concert, pageant, musical performance or
any sporting event other than a recognized sporting event, where the
consideration for admission is not more than ₹ 500 per person.
