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LIST OF RULES NOTIFIED BY THE GOVERNMENT
List of Declared Services [Section 66E]
renting of immovable property.
construction (including addition, alteration, replacement or remodeling) of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion-certificate by the ‘competent authority’.
temporary transfer or permitting the use or enjoyment of any intellectual property right.
development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software.
agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act.
transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods.
activities in relation to delivery of goods on hire purchase or any system of payment by installments.
service portion in the execution of a “works contract”. A “works contract” means-
A contract wherein a transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods; and
Such contract is for the purpose of –
Construction, erection, commissioning, installation, Completion, fitting out, repair, maintenance, renovation or alteration of any movable or immovable property; or
Carrying out any other similar activity or a part thereof in relation to such property.
Service portion in any activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.
N.B. : The above list is not an exact reproduction of the section. The list has been suitably paraphrased.
Negative List of Services [Section 66D]
The negative list shall comprise of the following services, namely:—
- services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government;
- services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
- transport of goods or passengers; or
- [anyservice]1, other than services covered under clauses (i) to (iii)above, provided to business entities;
- agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or [***]2 testing;
- supply of farm labour;
- processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
- renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
- loading, unloading, packing, storage or warehousing of agricultural produce;
- agricultural extension services;
- services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;
[(f) services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption;3
[(g) selling of space for advertisements in print media;4
[Explanation—For the purposes of this clause, the expression "betting, gambling or lottery" shall not include the activity specified in Explanation 2 to clause (44) of section 65B;]
- pre-school education and education up to higher secondary school or equivalent;
- education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
- education as a part of an approved vocational education course; approved vocational education course” means, -
- 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
- 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”;
- extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
- inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;
- a stage carriage;
- railways in a class other than—
- first class; or
- an airconditioned coach;
- metro, monorail or tramway;
- inland waterways;
- public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
- metered cabs or auto rickshaws;6
- by road except the services of—
- a goods transportation agency; or
- a courier agency;
- by an aircraft or a vessel from a place outside India up to the customs station of clearance in India; or
- by inland waterways;
N.B.: The above list is not an exact reproduction of the section. The list has been suitably paraphrased.
Place of Provision of Services Rules, 2012
In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 9/2005-ST dated March 3, 2005 published in the Gazette of India Extraordinary, Part II, section (3), subsection (i) vide number GSR 151 (E) dated the 3rd March 2005, and the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 11/2006-ST dated May 19, 2006 published in the Gazette of India Extraordinary, Part II, section 3, subsection (i) vide number GSR 227 (E) dated 19thMay 2006, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules for the purpose of determination of the place of provision of services, namely:-
1. Short title, extent and commencement. These rules may be called the Place of Provision of Services Rules, 2012. - (1)
They shall come into force on 1st day of July, 2012. (2)
2. Definitions. In these rules, unless the context otherwise requires,- -
“Act” means the Finance Act, 1994 (32 of 1994);
“account” means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account;
“banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);
“continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by one service provider or through one agent acting on behalf of more than one service provider, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued;
“financial institution” has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);
“intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) [or a supply of goods] [1] , between two or more persons, but does not include a person who provides the main service [or supplies the goods] [2] on his account.;
“leg of journey” means a part of the journey that begins where passengers embark or disembark the conveyance, or where it is stopped to allow for its servicing or refueling, and ends where it is next stopped for any of those purposes;
“location of the service provider” means-
- where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;
- where the service provider is not covered under sub-clause (a):
- the location of his business establishment; or
i where the services are provided from a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
- where services are provided from more than one establishment, whether business or fixed, the establishment most directly concerned with the provision of the service; and
- in the absence of such places, the usual place of residence of the service provider.
“location of the service receiver” means :-
- where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;
- where the recipient of service is not covered under sub-clause (a) :
- the location of his business establishment; or
- where services are used at a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or
- where services are used at more than one establishment, whether business or fixed, the establishment most directly concerned with the use of the service; and
- in the absence of such places, the usual place of residence of the recipient of service.
Explanation :- For the purposes of clauses (h) and (i), “usual place of residence” in case of a body corporate means the place where it is incorporated or otherwise legally constituted.
Explanation 2: - For the purpose of clause (i), in the case of telecommunication service, the usual place of residence shall be the billing address.
“means of transport” means any conveyance designed to transport goods or persons from one place to another;
“non-banking financial company” means-
- a financial institution which is a company; or
- a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; or
- such other non-banking institution or class of such institutions, as the Reserve Bank of India may, with the previous approval of the Central Government and by notification in the Official Gazette specify;
“online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;
“person liable to pay tax” shall mean the person liable to pay service tax under section 68 of the Act or under sub-clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules, 1994;
“provided” includes the expression “to be provided”;
“received” includes the expression “to be received”;
“registration” means the registration under rule 4 of the Service Tax Rules, 1994;
“telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting services.
words and expressions used in these rules and not defined, but defined in the Act, shall have the meanings respectively assigned to them in the Act.
3. Place of provision generally. - The place of provision of a service shall be the location of the recipient of service :
Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service.
4. Place of provision of performance based services.- The place of provision of following services shall be the location where the services are actually performed, namely:-
Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service :
[Provided further that this clause shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs and are exported after the repairs without being put to any use in the taxable territory, other than that which is required for such repair]; [3]
5. Place of provision of services relating to immovable property. - The place of provision of services provided directly in relation to an immovable property, including services provided in this regard by experts and estate agents, provision of hotel accommodation by a hotel, inn, guest house, club or campsite, by whatever, name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including architects or interior decorators, shall be the place where the immovable property is located or intended to be located.
6. Place of provision of services relating to events. - The place of provision of services provided by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission, shall be the place where the event is actually held.
7. Place of provision of services provided at more than one location. -Where any service referred to in rules 4, 5, or 6 is provided at more than one location, including a location in the taxable territory, its place of provision shall be the location in the taxable territory where the greatest proportion of the service is provided.
8. Place of provision of services where provider and recipient are located in taxable territory. - Place of provision of a service, where the location of the provider of service as
well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.
9. Place of provision of specified services. - The place of provision of following services shall be the location of the service provider :-
Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;
Online information and database access or retrieval services;
Intermediary services;
Service consisting of hiring of all means of transport other than, -
- aircrafts, and
- vessels except yachts upto a period of one month. [4]
10. Place of provision of goods transportation services. - The place of provision of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods :
Provided that the place of provision of services of goods transportation agency shall be the location of the person liable to pay tax.
11. Place of provision of passenger transportation service. - The place of provision in respect of a passenger transportation service shall be the place where the passenger embarks on the conveyance for a continuous journey.
12. Place of provision of services provided on board a conveyance. - Place of provision of services provided on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board, shall be the first scheduled point of departure of that conveyance for the journey.
13. Powers to notify description of services or circumstances for certain purposes. - In order to prevent double taxation or non-taxation of the provision of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of service or circumstances in which the place of provision shall be the place of effective use and enjoyment of a service.
14. Order of application of rules. - Notwithstanding anything stated in any rule, where the provision of a service is, prima facie, determinable in terms of more than one rule, it shall be determined in accordance with the rule that occurs later among the rules that merit equal consideration.
List of Exemptions under the Mega Exemption Notification
[Notification No.25/2012-Service Tax]
1 Services provided to the United Nations or specified international organizations.
Text of Entry
“1. Services provided to the United Nations or a specified international organization;”
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(zf) "specified international organisation" means an international organisation declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply.
2 Health care services by a clinical establishment, an authorised medical practitioner or para-medics includingtransportation of patient in an ambulance by any person .
Text of Entry
“2. (i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics;
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(t) “health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.
(j) “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.
(d) “authorised medical practitioner” means any medical practitioner registered with any of the Councils of the recognised system of medicines established or recognized by law in India and includes medical professional having the requisite qualification to practice in any recognised system of medicines as per any law for the time being in force.
3 Services provided by cord blood blanks;
Text of Entry
“2A 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 bio-medical waste treatment facility;
Text of Entry
“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;”
Related definitions as per the Act.
(j)“clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.
5 Services by a veterinary clinic
Text of Entry
3. Services by a veterinary clinic in relation to health care of animals or birds;”
6 Charities
Text of Entry
“4. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;”
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(k)“charitable activities” means activities relating to -
public health by way of -
care or counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or
public awareness of preventive health, family planning or prevention of HIV infection;
advancement of religion or spirituality;
advancement of educational programmes or skill development relating to,-
abandoned, orphaned or homeless children;
physically or mentally abused and traumatized persons;
prisoners; or
persons over the age of 65 years residing in a rural area;
preservation of environment including watershed, forests and wildlife;
7 Services of renting a religious place and conduct of any religious ceremony.
Text of Entry
“5. Services by a person by way of-
(a) renting of precincts of a religious place meant for general public; or
(b) conduct of any religious ceremony; ”
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(zb) “religious place” means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality.
(q) “general public” means a body of people at large sufficiently defined by some common quality of public or impersonal nature.
Related definitions as per the Act.
"renting" means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property.[s. 65B(41)]
8 Services by a specified organisation
Text of Entry
“(5A) Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement;”
Related definitions as prescribed in Notification No.25/2012-Service Tax.
'(zfa) "specified organisation" shall mean,-
9 Services provided by an advocate or arbitral tribunal
Text of Entry
“6. Services provided by-
- any person other than a business entity; or
- a business entity with a turnover up to rupees ten lakh in the preceding financial year;
- an advocate or partnership firm of advocates providing legal services ;
- any person other than a business entity; or
- a business entity with a turnover up to rupees ten lakh in the preceding financial year; or
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(a) “advocate” has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 ( 25 of 1961).
Advocate: Section 2(1)(a) of the Advocates Act, 1961.
"advocate" means an advocate entered in any roll under the provisions of this Act. (c) “arbitral tribunal” has the meaning assigned to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996)
Senior advocate :Section 2(1)(zdd) of the Advocates Act, 1961.
“senior advocate” has the meaning assigned to it in section 16 of the Advocates Act, 1961 ( 25 of 1961).
Arbitral tribunal: Section 2(d) of the Arbitration and Conciliation Act, 1996 (26 of 1996).
"arbitral tribunal" means a sole arbitrator or a panel of arbitrators.
(w) “legal services” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.
Related definitions as per Act.
"business entity" means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession. [s.65B(17)]
10.Certain Services in relation to recreational activities relating to arts, culture or sports
Text of Entry
“8. Services by way of training or coaching in recreational activities relating to arts, culture or sports;
11. Certain services by educational institution
Text of Entry
“9. Services provided,—
- transportation of students, faculty and staff;
- catering, including any mid-day meals scheme sponsored by the Government;
- security or cleaning or house-keeping services performed in such educational institution;
- services relating to admission to, or conduct of examination by, such institution;]
Related definitions as prescribed in Notification No.25/2012-Service Tax.
“(oa) Educational institution” means an institution providing services by way of:
12.Certain services in relation to National Skill Development
9A. Any services provided by,—
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;]
13. Certain services bythe Indian Institutes of Management
"9B. Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme, —
- two year full time residential Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT), conducted by Indian Institute of Management;
- fellow programme in Management;
- five year integrated programme in Management.";
14. Services in relation to certain Skill Development Initiative (SDI) Scheme
Text of Entry
“9C. services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under Skill Development Initiative (SDI) Scheme;
15. Services by certain training providers
Text of Entry
“9D. services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development by way of offering skill or vocational training courses certified by National Council For Vocational Training.
16. Services provided to a Recognized Sports body
Text of Entry
“10 Services provided to a recognized sports body by-
Related definitions as prescribed in Notification No. 25/2012-Service Tax.
(zaa) “recognized sports body” means (i) the Indian Olympic Association, (ii) Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level and its affiliated federation or bodies regulating a sport in India;
17 Services by way of sponsorship of organised sporting events
Text of Entry
“11 Services by way of sponsorship of sporting events organised,-
18 Services provided to the Government or local authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration.
Text of Entry
“12. 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 -
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(s) "governmental authority" means an authority or a board or any other body;
Related definitions as per the Act
"local authority" means-
19. Retrospective amendment for certain service provided to government, local authority or governmental authority for which contract entered into prior to 1.3.2015
Text of Entry
“12A. Services by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –
20 Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of certain structures
Text of Entry
13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-
(ba)a civil structureor any other original works pertaining to the 'In-situ rehabilitation of existing slum dwellers using land as a resource through private participation' under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers.
(bb) a civil structure orany other original works pertaining to the Beneficiary-led individual house construction/enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(y) original works" means has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006;
(q) “general public” means a body of people at large sufficiently defined by some common quality of public or impersonal nature.
21 Services by way of erection or construction of original works.
Text of Entry
“14. Services by way of construction, erection, commissioning or installation of original works pertaining to,-
Explanation.—The services by way of construction, erection, commissioning or installation of original works pertaining to monorail or metro, where contracts were entered into before 1st March, 2016, on which appropriate stamp duty, was paid, shall remain exempt;]
(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
the "Affordable Housing in Partnership" component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;
- any housing scheme of a State Government.
Related definitions as prescribed in Notification No. 25/2012-Service Tax.
(y) original works" means has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006;
(ze)"single residential unit" means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family;
(zc) "residential complex" means any complex comprising of a building or buildings, having more than one single residential unit;
Related definitions as per the Act.
"agricultural produce" means any produce of agriculture on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. [s.65B(5)]
22. Retrospective amendment in relation to construction etc of port or airport for which contracts are entered prior to 1.3.2015.
Text of Entry
“14A 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 1st 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 1st March, 2015. The exemption shall be allowed upto 31.3.2020.
23 Copyright services in respect of original literary works and cinematograph films.
Text of Entry
15. Services provided by way of temporary transfer or permitting the use or enjoyment of a copyright,-
24 Services by a performing artist in folk or classical art forms if the consideration charged for such performance is not more than one lakh rupees.
Text of Entry
“16. 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 and fifty thousand rupees”.
Provided that the exemption shall not apply to service provided by such artist as a brand ambassador.
Related definitions as prescribed in Notification No. 25/2012-Service Tax.
(h)"brand ambassador” means a person engaged for promotion or marketing of a brand of goods, service, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person
25 Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India;
Text of Entry
“17 Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India.”
26 Services by way of renting below ₹1,000/- per day.
Text of Entry
“ 18 Services by a hotel, inn, guest house, club, campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent; ”
Related definitions as prescribed in Notification No. 25/2012-Service Tax
(n) “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.
27 Non-air conditioned restaurants
Text of Entry
“19 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;” “19.
28 Air conditioned canteens maintained in Factory
Text of Entry
“19A 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”
29 Transportation by rail or a vessel from one port in India to another.
Text of Entry
“20 Services by way of transportation by rail or a vessel from one port in India to another of the following goods –
30 Specified services provided by a goods transport agency.
Text of Entry
Services provided by a goods transport agency, by way of transport in a goods carriage of,-“21.
Related definitions as prescribed in Notification No.25/2012-Service Tax.
“(r) “goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988)
Section 2(14) of the Motor Vehicles Act, 1988 "goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods.
Related definitions as per the Act.
"goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.[s.65B(26)] “goods” means every kind of movable property other than actionable claim and money; and includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.[ s.65B(25)]
31 Hiring of means of transport.
Text of Entry
“22. Services by way of giving on hire -
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(zg) “state transport undertaking" has the meaning assigned to it in clause (42) of Section 2 of the Motor Vehicles Act, 1988 (59 of 1988)
Section 2(42) of the Motor Vehicles Act, 1988
“State transport undertaking” means any undertaking providing road transport service, where such undertaking is carried on by –
Explanation. – For the purposes of this clause, “road transport service” means a service of motor vehicles carrying passengers or goods or both by road for hire or reward.
32 Specified air / road Transport of passengers
Text of Entry
“23. Transport of passengers, with or without accompanied belongings, by -
(bb) stage carriage other than air conditioned stage carriage
Related definitions as prescribed in Notification No. 25/2012-Service Tax.
(m) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
Section 2(7) of the Motor Vehicles Act, 1988
“contract carriage” means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum –
- a maxicab; and
- a motorcab notwithstanding that separate fares are charged for its passengers.
33 Specified services provided to the Government or a local authority
Text o f Entry
25. Services provided to Government, a local authority or a governmental authority by way of -
Related definitions as prescribed in Notification No. 25/2012-Service Tax.
(53) “vessel” has the meaning assigned to it in clause (z) of section 2 of the Major Port Trusts Act,1963(38 of 1963)
(s) "governmental authority" means an authority or a board or any other body;
Related definitions as per the Act "local authority" means-
(h) a Panchayat as referred to in clause (d) of article 243 of the Constitution;
(i) a Municipality as referred to in clause (e) of article 243P of the Constitution;
(j) a Municipal Committee and a District Board, legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund;
(k) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
(l) a regional council or a district council constituted under the Sixth Schedule to the Constitution;
(m) a development board constituted under article 371 of the Constitution; or a regional council constituted under article 371A of the Constitution; [s. 65B(31)]
34 Specified Services of general insurance business
Text of Entry
26. Services of general insurance business provided under following schemes -
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(p) “general insurance business” has the meaning assigned to it in clause (g) of Section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972)
35 Specified life insurance services
Text of Entry
26A Services of life insurance business provided under the following schemes
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(x) “Life insurance business” has the meaning assigned to it in clause (11) of Section 2 of the Insurance Act, 1938 (4 of 1938)
(xa) “life micro-insurance product” shall have the meaning assigned to it in clause (e) of regulation 2 of the Insurance Regulatory and Development Authority (Micro-insurance) Regulations, 2005
35 Services by way of contribution under “Atal Pension Yojana (APY)”.
Text of Entry
“26B. Services by way of contribution under “Atal Pension Yojana (APY).
36Services under Pension Fund Regulatory and Development Authority
Text Entry
“26C Services of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013)
37 Services provided by an incubatee up to a total business turnover of fifty lakh rupees in a financial year.
Text of Entry
“27. Services provided by an incubatee up to a total business turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(u) “incubatee” means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agreement with the TBI or the STEP to enable himself to develop and produce hi-tech and innovative products.
38 Services by an unincorporated body or society to own members.
Text of Entry
- 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;
Related definitions as prescribed in Notification No. 25/2012-Service Tax.
(zj) “trade union” has the meaning assigned to it in clause (h) of section 2 of the
Trade Unions Act, 1926 (16 of 1926);
Section 2(h) of the Trade Unions Act,1926
"Trade Union" means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions.
(zc) "residential complex" means any complex comprising of a building or buildings, having more than one single residential unit;
39 Exemption to certain intermediaries – sub broker, authorized persons providing access to trading platform, distributer of SIM cards, rural area business facilitators for banks and insurance companies.
Text of Entry
“29. Services by the following persons in respective capacities -
(ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g);
(gb) business facilitator or a business correspondent to an insurance company in a rural area; or
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(zh) "sub-broker" has the meaning assigned to it in sub-clause (gc) of clause 2 of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992.
Clause 2(gc) of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992.
“sub-broker” means any person not being a member of stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities thorough such stock brokers.
(e) "authorised person" means any person who is appointed as such either by a stock broker (including trading member) or by a member of a commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange as an agent of such stock broker or member of a commodity exchange;
(o) “distributor or selling agent” has the meaning assigned to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include distributor or selling agent authorised by the lottery organising State.
Rule 2(c) of the Lottery (Regulation) Rules, 2010
“distributor or selling agent” means an individual or a firm or a body corporate or other legal entity under law so appointed by the Organising State through an agreement to market and sell lotteries on behalf of the Organising State.
(i) “business facilitator or business correspondent” means an intermediary appointed under business facilitator model or business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India.
(g) “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act,1934(2 of 1934)
Section 45A(a) of the Reserve Ban k of India Act,1934
"banking company" means a banking company as defined in section 5 of the 2[ Banking Regulation Act, 1949 (10 of 1949 ),] and includes the State Bank of India 3[ any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959 ), any corresponding new bank constituted by section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970 ), and any other financial institution notified by the Central Government in this behalf.
(v). “insurance company” means a company carrying on life insurance business or general insurance business.
(zd) “rural area” means the area comprised in a village as defined in land revenue records, excluding-
(l) “commodity exchange” means an association as defined in Section 2(j) and recognized under section 6 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952)
40 Specified job works.
Text of Entry
“30. Carrying out an intermediate production process as job work in relation to -
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(b) ”appropriate duty” means duty payable on manufacture or production under a Central or State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt.
(z) “principal manufacturer” means any person who gets goods manufactured or processed on his account from another person.
Related definitions as per the Act.
"Agriculture" means the cultivation of plants and rearing of all life-forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products. [s.65B(3)]
41 Services by an organizer of overseas business exhibition.
Text of Entry
“31. Services by an organiser to any person in respect of a business exhibition held outside India;”
“32……….
Text of Entry
“33. Services by way of slaughtering of animals.”
43 Services received from a service provider located in a non-taxable territory by the Government, local authority, individual, Charity.
Text of Entry
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(s) "governmental authority" means an authority or a board or any other body;
Related definitions as per the Act
"local authority" means-
‘(26A) “Government” means the Departments of the Central Government, a State Government and its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder;’;
44 Services of public libraries
Text of Entry
45 Services by Employees state Insurance Corporation
Text of Entry
46 Services by way of transfer of a going concern, as a whole or an independent part thereof
Text of Entry
47 Services by way of public conveniences
Text of Entry
48 Services by Governmental Authority
Text of Entry
Related definitions as prescribed in Notification No.25/2012-Service Tax.
(s) "governmental authority" means an authority or a board or any other body;
49 Services by way of loading, unloading, packing etc.
Text of Entry
“40. Services by way of loading, unloading, packing, storage or warehousing of rice, cotton, ginned or baled”
50 Forex services received from outside India by RBI
Text of Entry
“41. Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves;”
51 Tour services provided outside India to a foreign trust
Text of Entry
“42. Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India.”
52 Services of common effluent treatment plant operator.
Text of Entry
“43. Services by operator of Common Effluent Treatment Plant by way of treatment of effluent”
53 Specified services in respect of fruits and vegetables
Text of Entry
“ 44. Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables”
54 Admission to museum, zoo etc
Text of Entry
“45. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo”
Related definitions as prescribed in Notification No.25/2012-Service Tax.
‘(xaa) “national park’ has the meaning assigned to it in the clause (21) of the section 2 of The Wild Life (Protection) Act, 1972 (53 of 1972);
‘(zi)“tiger reserve” has the meaning assigned to it in clause (e) of section 38K of the Wild Life (Protection) Act, 1972 (53 of 1972);
‘(zk) “wildlife sanctuary” means sanctuary as defined in the clause (26) of the
section 2 of The Wild Life (Protection) Act, 1972 (53 of 1972);
‘(zl) “zoo” has the meaning assigned to it in the clause (39) of the section 2 of the Wild Life (Protection) Act, 1972 (53 of 1972).’
55 Movie Exhibition Services
Text of Entry
“46 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;”;
56 Admission to show,sporting and other events
Text of Entry
“47 Services by way of right to admission to,-
(i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;
(ii) recognized sporting event;
(iii) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs 500 per person.”.
Related definitions as prescribed in Notification No.25/2012-Service Tax.
‘(zab) “recognised sporting event” means any sporting event,-
57 Services provided by Government or a local authority to a business entity
Text Entry
“48 Services provided by Government or a local authority to a business entity with a turnover up to rupees ten lakh in the preceding financial year.
58 Service provided by Provident Fund Organization:
Text of Entry
“49 Services provided by Employees‟ Provident Fund Organisation (EPFO) to persons governed under the Employees‟ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952).
Text of Entry
“50Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999)
60. Services provided by Securities and Exchange Board of India (SEBI)Text of Entry
“51 Services provided by Securities and Exchange Board of India (SEBI) set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market.
Text of Entry
“52. Services provided by National Centre for Cold Chain Development under Ministry of Agriculture, Cooperation and Farmer‟s Welfare by way of cold chain knowledge dissemination
Text Entry
“53 Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India.
"Entry 54. to another Government or local authority:
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;
“Entry 55. by way of issuance of passport, visa, driving licence, birth certificate or death certificate;
“ Entry 56. where the gross amount charged for such services does not exceed ₹ 5000/- :
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:
Provided further that in case where continuous supply of service, as defined in clause (c) of rule 2 of the Point of Taxation Rules, 2011, is provided by the Government or a local authority, the exemption shall apply only where the gross amount charged for such service does not exceed ₹ 5000/- in a financial year;
“Entry 57 by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract;
“Entry 58. a) by way ofregistration required under any law for the time being in force;
“Entry 59. by way of assignment of right to use natural resources to an individual farmer for the purposes of agriculture;
“Entry 60. Services by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution;
“Entry 61. by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1st April, 2016:
Provided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource;
“Entry 62. by way of allowing a business entity to operate as a telecom service provider or use radiofrequency spectrum during the financial year 2015-16 on payment of licence fee or spectrum user charges, as the case may be;
“ Entry 63. Services provided by Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges (MOT).".
LIST OF OTHER EXEMPTIONS
LIST OF ABATEMENTS UNDER THE PROPOSED LAW
The Central Government has vide notification no. 26/2012-Service Tax dated 20.6.2012 granted exemption in the form of abatement /rebates to the service providers which are summarised below -
Sr.No. |
Nature of service |
Rebate Allowed |
Taxable value |
||||
1 |
Services in relation to financial leasing including hire purchase |
90% |
10% |
||||
2 |
|
70% 60% 70% |
30% 40% 30% |
||||
3 |
Bundled service by way of Supply of food / drink in a premises (including hotel, convention centre, club, pandal, shamiana or any place specifically arranged for organizing a function) together with renting of such premises. [see note (ii)] |
30% |
70% |
||||
4 |
Transport of passengers by Air with or without accompanied belongings in
|
60% 40% |
40% 60% |
||||
5 |
Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential /lodging purposes. [See note (iii)] |
40% |
60% |
||||
6 |
Services of goods transport agency in relation to transportation of goods. [other than used household goods] |
70% |
30% |
||||
|
7A Services of goods transport agency in relation to transportation of used household goods. |
60% |
30% |
||||
7 |
Services provided in relation to a Chit |
30% |
70% |
||||
8 |
Renting of Motor Cabs |
60% |
40% |
||||
9 |
Transport of passengers by
|
60% |
40% |
||||
10 |
Transport of goods in a vessel |
70% |
30% |
||||
11 |
Services by a tour operator in relation to,—
|
|
|
||||
|
|
70% |
30% |
||||
12 |
Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority |
70% |
30% |
Notes:
- If the input service provider has claimed abatement and paid tax on 40% of the taxable value –100% of Cenvat Credit
- If the input service provider has paid service tax on full value – 40% Cenvat Credit.
1 Substituted for "support services" by the Finance Act, 2015 w.e.f. 1-4-2016
2 Word "seed" omitted by the Finance Act, 2013, w.e.f. 10-5-2013.
3Substituted by the Finance Act, 2015, w.e.f. 1-6-2015. Prior to its substitution, clause (f) read as,
"(f) any process amounting to manufacture or production of goods;"
4Substituted by the Finance (No. 2) Act, 2014, w.e.f. 1-10-2014. Prior to its substitution, clause (g) read as, “(g) selling of space or time slot for advertisements other than advertisements broadcast by radio or television
5 Omitted by the Finance Act, 2015, w.e.f. 1-6-2015. Prior to its omission, clause (j) read as, “(j) admission to entertainment events or access to amusement facilities
6Substituted by the Finance (No. 2) Act, 2014, w.e.f. 1-10-2014. Prior to its substitution, sub-clause (vi) read as, “(vi) metered cabs, radio taxis or auto rickshaws