Vide Finance Act, 2012 Concept of Negative list of Services been introduced according to which all services except the those specified in Negative list or been exempted specifically from service Tax are liable for Service Tax. First Notification issued notifying exempt services was Principal Notification No. 25/2012 – Service Tax, dated 20th June, 2012. While Negative list of services was specified in section 66D of Finance Act, 1994. In this Article we have prepared a List of Services which are exempt from Service Tax as on 06.09.2016 from Service Tax after considering Principal Service Tax Notification 25/2012-Service Tax and subsequent Notifications issued by CBEC from time to time.
Details of Notifications effecting Subsequent Amendment to Exempt List of Services are as follows ( Updated till 06.09.2016 ) :-
Notification No. 32/2016-Service Tax, Dated: June 6, 2016On the basis of Analysis of above mentioned Notifications we have Compiled Updated List of Services Under Exempt List as on 06.09.2016 on which no Service tax is payable. There are few exemption which will be available from 1st June 2016 and in respect of such exemptions we have mentioned either before or after the exemption details the date of applicability of such exemption.
We have kept the Serial No. in Exempt List Compiled below as per Various Notification issued by CBEC from time to time :-
| S.N. | SERVICES COVERED UNDER MEGA EXEMPTION NOTIFICATION |
| 1. | Services provided to the United Nations or a specified international organization; |
| 2. | (i) Health care services by a clinical establishment, an authorised 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; | |
| 2A. | Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation; |
| 2B. | 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; |
| 3. | Services by a veterinary clinic in relation to health care of animals or birds; |
| 4. | Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities; |
| 5. | Services by a person by way of- |
| (a) renting of precincts of a religious place meant for general public; or |
Above Clause is Amended/ Substituted by Notification No. 40/2016-ST Dated 06.09.2016 to as follows :-
(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, 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) a senior advocate by way of legal services to a person other than a person ordinarily carrying out any activity relating to industry, commerce or any other business or profession
Further Amended/Substituted vide Notification No. 32/2016-Service Tax, Dated: June 6, 2016 as follows :-
(c) a senior advocate by way of legal services 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;
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(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Government;
(iii) security or cleaning or house-keeping services performed in such educational institution;
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;
( with effect from such date on which the Finance Bill, 2016 receives assent of the President of India)
(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or
(ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship; ‟
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) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or
(c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause (44) of section 65 B of the said Act;
under a contract which had been entered into prior to the 1 st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date:
(a) railways, excluding monorail and metro;
(ca) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under:
(i) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission!Pradhan Mantri Awas Yojana;
Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port provided under a contract which had been entered into prior to 1 st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date:
provided that Ministry of Civil Aviation or the Ministry of Shipping in the Government of India, as the case may be, certifies that the contract had been entered into before the 1 st March, 2015:
Provided that the exemption shall not apply to service provided by such artist as a brand ambassador.
Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to the following services, namely:-
(a) services specified in sub-clauses (i),(ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994;
(b) services by way of renting of immovable property.
Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994:
(a) registration required under any law for the time being in force;
(UPDATED ON 06.09.2016- Please do not Copy , we will take strict against those, who copy and post on other websites)