CBEC has clarified the Services on which no Tax is leviable if provided Government or a local authority to a business entity with a turnover up to rupees ten lakh in the preceding financial year, which are as follows :-
(i) 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 ;
(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
(iii) transport of goods or passengers; or
(iv) services by way of renting of immovable property.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE),
Notification No. 26/2016-Service Tax
Dated: 20th May, 2016
G.S.R. 538(E).-In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and sub-section (2A) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:-
In the said notification, in Entry 48, the following Explanation shall be inserted, namely:-
“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.”.
[F. No. 334/8/2016 -TRU]
Under Secretary to the Government of India
Note:- The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 25/2012 – Service Tax, dated the 20th June, 2012, vide number G.S.R. 467 (E), dated the 20th June, 2012 and was last amended vide notification number 22/2016 – Service Tax, dated the 13th April, 2016 vide number G.S.R. 419(E), dated the 13th April, 2016.