Amendment in Service Tax Exemptions WEF 01.03.2016

Subject

Present Position

Budgetary Change

Condition if any

Reference

Effective From

Restoration of exemption on services provided to the Government, a local authority or a governmental authority.

Exemption from Service Tax on services provided to the Government, a local authority or a governmental authority by way of construction, erection, etc. of – (i) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (ii) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; (iii) 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use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65B of the said Act; was withdrawn with effect from 1.4.2015.

The same is being restored for the services [The exemption is being restored till 31.03.2020.

provided under a contract which had been entered into prior to 01.03.2015 and on which appropriate stamp duty, where applicable, had been paid prior to that date.

The services provided during the period from 01.04.2015 to 29.02.2016 under such contracts are also proposed to be exempted from service tax.

Notification No. 25/2012-ST as amended by notification No. 09/2016-ST dated 1st March, 2016

And

New section 102 of the Finance Act, 1994]

01-03-2016

Service Tax on services by way of construction, erection, etc. of original works pertaining to an airport and port

Exemption from Service Tax on services by way of construction, erection, etc. of original works pertaining to an airport and port was withdrawn with effect from 1.4.2015.

Note:

The said exemption was withdrawn vide Notification No. 9/2015 – Service Tax New Delhi, the 1st March, 2015

The same is being restored

The services provided during the period from 01.04.2015 to 29.02.2016 under such contracts are also proposed to be exempted from service tax.

The exemption is being restored till 31.03.2020.

These services by way of construction, erection, etc. of original works pertaining to an airport and port should have been provided under a contract which had been entered into prior to 01.03.2015 and
subject to production of certificate from the Ministry of Civil Aviation or Ministry of Shipping, as the case may be, that the contract had been entered into prior to 01.03.2015andon which appropriate stamp duty, where applicable, had been paid prior to that date

Notification No. 25/2012-ST as amended by notification No. 09/2016- ST dated 1st March, 2016

Note:

A New Entry vide Sr. No. 14A has been inserted after Sr. No. 14 in the Notification No. 25/2012-ST

01-03-2016

Withdrawal of exemption on services by way of construction, erection,  commissioning,  or installation of  original works  pertaining to  monorail or  metro for new  contracts  entered into on  or after  01.03.2016

Previously these services were taxable up to 29-02-2016

The exemption is being withdrawn.

NA

Notification No. 25/2012-ST as amended by Sl. No(vi)A of notification No. 09/2016- ST dated 1st March, 2016.

Note:

In entry 14, with effect from 1st March, 2016, for item (a) of Entry 14 of Notification No. 25/2012-ST, instead of railways, including monorail and metro the words “railways, excluding monorail and metro;” have been substituted

01-03-2016

Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or 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.

Previously these services were taxable up to 29-02-2016

The services are now exempt.

Dwelling units of the projects which are constructed for existing slum dwellers are only exempt. And construction activities etc. should take place only on the same very place where the residents of the slums are presently residing.

The exemption is being provided by way of insertion of new entry at S. No. 13 (ba) in Notification No. 25/2012-ST

01-03-2016

Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana

Previously these services were taxable up to 29-02-2016

The services are being exempted.

the Pradhan Mantri Awas Yojana (PMAY) is a new name given to the ‘housing scheme for all 2022. This scheme has been introduced by the government of India on June 25, 2015. This newly introduced housing scheme by the prime minister targets to construct approximately two crore houses in the entire nation and that too within the duration of seven years, 2015 to 2022.

Previously this scheme was known as Housing for All Scheme

The exemption is being provided by way of insertion of new entry at S. No. 13 (bb) in Notification No. 25/2012-ST

01-03-2016

Services by way of construction, erection, commissioning, or installation of original works pertaining to 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; (ii) any housing scheme of a State Government.

Previously these services were taxable up to 29-02-2016

The services are now exempt.

The exemption is being provided by way of insertion of new entry at S. No. 14 (ca) in Notification No. 25/2012-ST

01-03-2016

Certain Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students

Previously these services were taxable up to 29-02-2016

The following services are being exempted:

2 year full time Post Graduate Programme in Management (PGPM)

5 year Integrated Programme in Management

Fellowship Programme in Management

The educational programme should not be Executive Development Programme

The Services should be provided per the guidelines of the Central Government, to their students, by way of the following educational programmes

a) 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;

b) fellow programme in Management;

c) five year integrate programme in Management.

The exemption is being provided by way of insertion of new entry at S. No. 9B in Notification No. 25/2012-ST

01-03-2016