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List of Services fully exempt from service tax

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List of Services fully exempt from service tax under Notification No. 25/2012 dated 20.06.2012

In this article, we will provide a comprehensive list of services that are fully exempt from service tax under Notification No. 25/2012, dated 20.06.2012. Understanding the exemptions and their implications is essential for businesses and individuals alike.

100% EXEMPTION AS PER NOTIFICATION NO. 25/2012- SERVICE TAX DATED 20.06.2012

S. No

 Service Service Provider Service Receiver
1 Any service Any person 1. United Nations

2. Specified International

Organization e.g. WTO
2 Health care Service i.e. Diagnosis/ treatment /Care/ Ambulance/ hair transplant/ plastic surgery. 1.Clinical Establishment i.e. Hospital, Nursing Home, Clinic, Sanatorium, testing lab etc.

2. Medical practitioner i.e. Doctor.

3. Paramedics i.e. Nursing Staff.

 Any person
2A  

Preservation of stem cells i.e. Storage of blood.

Any other service i.e. Bifurcation of blood.

 Core blood bank. Any person
2B Common Bio-medical Waste Treatment Facility i.e. treatment or disposal of bio-medical waste / processes incidental. Operator. Clinical establishment.
3 Health care of animals or birds. Veterinary clinic. Any person
4 Charitable activities i.e.

1. Public health by way of-

i) Care and counseling of*

ii) Public awareness of prevention health, family planning, prevention of HIV infection.

2. Advancement of religion or spirituality.

3. Advancement of educational programmer /skill development #

4. Preservation of environment including watershed, forests and wildlife.

 An entity registered under section 12 AA of the IT Act,1961. 1) (i) Care and counseling of*

a) Terminally ill persons with physical/mental disability.

b) Persons afflicted with HIV.

c) Persons addicted to a dependence- forming substance such as narcotics drugs or alcohol.

2) Advancement of educational programmer /skill development to #

i) Abandoned/ orphaned/ homeless children.

ii) Physically/ mentally abused and traumatized persons.

iii) Prisoners.

iv) Persons over the age of 65 years residing in a rural area.
5 1. Renting of precincts of a Religious Place.

2. Any religious ceremony.

 Any person Any person
5A Tour facilitated by the MEA of government of India. Specified Organization i.e. Kumaon Mandal vikas Nigam Ltd.

(Undertaking of Uttarakhand govt.) or Committee/State committee.

 Religious pilgrimage.
6. Legal Services. 1. Arbitral Tribunal.2. Individual as an Advocate or a partnership firm of advocates.3. Person represented on an arbitral tribunal. 1. (i) Any person other than a Business entity.

(ii) Business entity with a turnover upto Rs. 10 lakhs in preceding F/y.

2.(i) an Advocate or a partnership firm of advocates.

(ii) Any person other than a Business entity.

(iii) Business entity with a turnover upto

Rs. 10 lakhs in preceding F/y.3. An arbitral tribunal.
7. DELETED
8. Training or coaching in recreation activities related to Arts/ Culture/ Sports. Any Person Any Person
9. Any service Educational institution Students/Faculty/Staff of educational institution
1.Transportation of students/ faculty/ staff.

2. Catering including mid-day meals scheme sponsored by the government.

3.Security/ Cleaning/ House-keeping in educational institution.

4. Related to admission to educational institution or conduct of examination by educational institution.

 Any Person Educational institution means any institution providing –

1. Pre-education and education up to higher secondary school.

2. Education as a part of a curriculum for obtaining a qualification recognized by Indian law.

3. Education as a part of an approved vocational education course.
9A Any Service 1.National skill Development Corporation (NSDC).

2.Sector skill council (SSC) approved by NSDC.

3.Assessment agency approved by NSDC/SSC.

4. Training partner by NSDC/ SSC.

 Any person
10. 1.Participation in a tournament/ championship organized by RSB.

2.Any service

 1.An individual as a player/ Referee/ umpire/ coach/ manager.

2. RSB

 Recognized Sport Body (RSB).
11. 1.Sponsorship of sporting events where participating teams /individual represent any district/ state /zone /country.

2.Sponsorship of sporting events.

3. Sponsorship of sporting events under Panchayat Yuva Kreed and Khel Abhiyaan(PYKKA)

 1. National sport federation or its affiliated federations.

2. Association of Indian universities, Inter-university sports board, School games federation of India, All India sports council for the deaf, Paralympics committee of India, Special Olympics Bharat, Central civil service cultural and sports board.

3. Any person

 Any person
12. Construction/ erection/ commissioning/ installation/ completion/fitting out repair/ maintenance/ renovation/ alteration of-

1. Civil structure or any other original works meant predominantly for use other than for commerce, industry, any other Business or profession.

2.Historical monument, archaeological site or remains of national importance, archaeological excavation, antiquity specified under Ancient monuments and archaeological sites and remains act, 1958.

3.Structure meant predominantly for use as an education/clinical/art of cultural establishment.

4.Canal / dam/ other irrigation works.

5.Pipeline, conduit, plant for Water supply, Water treatment, sewerage treatment/disposal.

6.Residential complex predominantly meant for govt. use or the use of their employees or other persons specified in the explanation 1 to clause 44 section 65B of the said act.

 Any person Govt./ Local Authority/ Govt. authority.
13. Construction/ erection/ commissioning/ installation/ completion/ fitting out repair/ maintenance/ renovation/ alteration of-

1.Road/Bridge/Tunnel/Terminal for road transportation for use by general public.

2.Civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru national urban renewal mission or Rajiv Awaas Yojna.

3.Building owned by entity registered u/s-12AA of IT Act, 1961 and meant predominantly for religious use by general public.

4.Pollution control or effluent treatment plant except located as a part of a factory.

5.Structure meant for funeral, burial or cremation of deceased.

 Any person Any person
14. Construction/ erection/ commissioning/ installation original works (no Repair & maintenance) permitting to-

1.An airport, port, railways including monorail or metro.

2.Single residential unit otherwise as a part of a residential complex.

3.Low-cost houses up to a carpet area of 60 square meters per house in a housing project “Under the scheme of Affordable Housing in partnership”.

4.Post-harvest storage infrastructure for agriculture produce including a cold storage for such purchases.

5.Mechanized food grain handling system, machinery or equipment for unit processing agriculture produce as food stuff excluding alcoholic beverages.

 Any person Any person
15. Temporary transfer or permitting the use or enjoyment of a copyright of-

1.Original literary, dramatic, musical or artistic works covered u/s-13 of Copyright Act,1957.

2. Cinematographic films for exhibition in a cinema hall or cinema theatre.

 Any person

 

 

 Any person
16. Performance of Folk/ Classical art in form of

1.Music

2.Dance

3.Theatre

 Any artist. Any person
17. Collecting/Providing News Independent journalist/ PTI/ UNI Any person
18. Service for residential and lodging purposes having declared tariff of a unit of accommodation below Rs. 1,000 or equivalent to Rs. 1,000. Hotel/ inn/ guest house/ club/ campsite Any person
19. Serving of food or beverages. Restaurant/ Eating joint/ Mess other than those having the facility of air-conditioning/ central air-heating in any part of establishment at any time during the year. Any person
19A. Serving of food or beverages. Factory covered under Factory Act, 1948 having the facility of air-conditioning/ central air-heating in any part of establishment at any time during the year. Any person
20. Transportation by Rail or vessel from one port in India to another of following goods-

Relief material

Defence/ military equipment

Newspaper/ magazines registered with Registrar of Newspaper

Railway equipment/ material

Agriculture produce

Foodstuff

Chemical fertilizer/organic manure/oil cakes

Cotton/Ginned/Baled

 Any person Any person
21. Transportation of goods by GTA of following goods-

1.Relief material

2.Defence/military equipment

3.Newspaper/magazines registered with Registrar of Newspaper

4.Agriculture produce

5.Foodstuff

6.Chemical fertilizer/organic manure/oil cakes

7.Cotton/Ginned/Baled

8.Consignment transported in a single carriage does not exceed Rs. 1,500/-

9. All goods for a single consignee does not exceed Rs. 750/-

 Any person Any person
22. 1. Hiring of a motor vehicle meant to carry more than 12 passengers.

2. Hiring of any vehicle for transportation of goods.

 Any Person 1.State transport undertaking e.g. DTC.2.GTA.
23. Transport of passengers-

1. By air, embarking/termination in an airport located in the state of Arunachal Pradesh/ Assam/ Manipur/ Meghalaya/ Mizoram/ Nagaland/ Sikkim/ Tripura/ Baghdogra in West Bengal.

2. Non-airconditioned contract carriage other than radio taxi/ tourism/ conducted tour/ charter (special bus).3. Ropeway/ Cable car/ Aerial tramway.

 Any person Any person
24. DELETED
25. 1. Water supply/ Public health/ Sanitation conservancy/ solid waste management/ slum improvement & up-gradation.

2. R&M of vessel

 Any person Govt./Local authority/governmental authority.
26. Service of General Insurance Business under Hut Insurance scheme/ scheme for insurance of tribals/ Jan Arogya Bima policy etc. Any person Any person
26A. Service of Life Insurance Business under following schemes:

Janashree Bima Yojna (JBY)

Aam Aadmi Bima Yojna (AABY)

Life micro-insurance product having maximum amount of cover of Rs. 50,000/-.

 Any person Any person
27. Any Service An Incubatee up to a total Business turnover of Rs. 50 lakhs in a financial year subject to the following conditions-

Total Business turnover had not exceeded Rs. 50 lakh during the preceding F/Y.

Period of three years has not lapsed from the date of entering into an agreement as an incubate.

 Any person
28. Reimbursement of charges/ share of contribution-

1.As a trade union.

2. For the provision of carrying out any activity which is exempt from the levy of ST.

3.Upto an amount of Rs. 5,000/- per month per member for sourcing of goods and services from a third person for the common use of its members in a housing society or a residential complex.

 Unincorporated body or Non-profit entity registered under any law Members of Unincorporated body or Non-profit entity.
29. Services by the service provider in their respective capacities i.e. service provided by intermediate person. 1. Sub-broker/ authorized person.

2.Authorized person.

3.Mutual fund agent/ Distributor

4.Selling or marketing agent of lottery tickets.

5.Selling agent or distributor of SIM cards/ recharge coupon vouchers.

6.Business facilitator or Business correspondent.

7.Sub-contractor providing service of works contract.

 1. Stock broker

2. Member of a commodity exchange.

3. Mutual fund/asset management co.

4. Selling or marketing agent.

5. Telecommunication co.

6. Banking Co./ Insurance co, in a rural area.

7. Another contractor who providing works contract service which are exempt.
30. Carrying out an intermediate production process as job-work in relation to-

1. Agriculture, printing, textile processing.

2. Cut and polished diamonds and gemstones or plain or studded jewellery of gold and other precious metals.

3. Any goods on which appropriate duty is payable by the principal manufacturer (i.e. dutiable goods).

4. Processes of electro-plating, zinc plating, powder coating, anodizing, heat treatment, painting including spray painting during the course of manufacture of parts of cycles or sewing machine upto an aggregate value of taxable service of the specified processes of Rs.150 lakhs in a F/Y subject to the condition that such aggregate value had not exceed Rs. 150 lakhs during the preceding F/Y.

 Any person Any person
31. Business Exhibition held outside India Any person Any person
32. Telephone calls 1. Departmentally run public telephones.

2. Guaranteed public telephones operating only for local calls.

3. Free telephone at airport and hospitals where no bills are being issued.

 Any person
33. Slaughtering of animals Any person Any person
35. Lending of books, publications or any other knowledge-enhancing content or material. Public Libraries. Any person.
36. Any services Employee’s State Insurance Corp. Person under Employee’s Insurance Act,1948.
37. Transfer of going concern (business) as a whole or an independent part. Any person Any person
38. Public conveniences such as facilities of bathroom, washrooms, lavatories, urinal, toilets. Any person Any person.
39. Any activities in relation to any function entrusted to a municipality. Any person Government authority.
40. Loading, unloading, packing, storage, warehousing of Rice, cotton, ginned, baled. Any person Any person.
41. Management of foreign exchange reserves. Person located outside India RBI
42. Tour conducted wholly outside India. Tour operator Foreign tourist

(Compiled by Rishi Goyal an Article Assistant withS. P. Chopra & Co. , who can be contacted at [email protected])

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52 Comments

  1. Tapas Kumar Tunga says:

    I have a small xerox offset as Printing Press which is a partnership business. We are printing flex, books, forms etc. of Govt. offices getting through tender process and also print souvenir, bills, voucher etc. of local people. Kindly, let me know have I to pay service tax for this type of printing works. If not, kindly mention the rules of the service tax.
    regards

      Reply
  2. SARVAJEET PRAJAPATI says:

    SIR, I AM LIFE INSURANCE AGENT (LIC) FROM 21 YRS RECENTLLY I RECIEVED LETTER FROM SERVICE TAX DEPARTMENT TO PAY SEVICE TAX FROM 2014-15, 2015-16, 2016-17 AND 2017-18 SO I WANT TO KNOW THAT LIFE INURANCE AGENT ARE LIABLE TO PAY SERVICE TAX OR EXEMTED FROM SERVICE TAX. PLESE GUIDE US

      Reply
    1. SALIM SHAIKH says:

      ACCOUNT WRITTING INCOME RECEVED FROM SEVRAL NUMBERS OF CLIENT TOTALING OF RS.12 LACS. WHEATHER IT TAXABLE SERVICE ? PROVIDE ME ACCOUNTING CODE FOR THIS PARTICULAR SERVICE.

        Reply
    2. SALIM SHAIKH says:

      CAR PENTER MISTRY SUTHARI WORK FOR FURNITURE INCOME RECEVED FROM SEVRAL NUMBERS OF CLIENT TOTALING OF RS.12 LACS DURING THE YEAR 2015-16. WHEATHER IT TAXABLE SERVICE ? PROVIDE ME ACCOUNTING CODE FOR THIS PARTICULAR SERVICE.

        Reply
  7. shivakumar & co, says:

    sir i have worked in south western ralway for new trac work elctrical work shifting of 220 kv transncemission line work the indian railway said us no service tax for this work but in service tax office thay want to letter from railway but railway deportment not giving any letter

      Reply
  9. P M BOHRA says:

    We have received a notice for payment of service tax from 2012-13 to 2017-18. We got registration & with in a short span surrendered the service tax number as it was not applicable to our activities.

    Please advise us the position.

      Reply
  10. Nagaraja B M says:

    Constructions of Class rooms and staff quarters and other educational institute and educational purpose is exempted form service tax or not.

      Reply
  11. Dr.R.K.Gupta says:

    Please convey if Govt. Hospital Kitchen services providing meals to patients admitted in General Ward is exempt from service tax. The hospital is not charging anything towards treatment as well as meals being provided to admitted patients

      Reply
  13. Navin says:

    Sir,
    My work is setting up and O & M of treatment plants for effluents such as sewerage, lab waste, laundry waste etc. generated from educational institutions. Please tell me if I am exempt from Service Tax vide Clause 13 (4)
    Sincerely,
    Navin

      Reply
  14. Navin says:

    Sir,
    My work is setting up treatment plants for effluents such as sewerage, lab waste, laundry waste etc. generated from educational institutions. Please tell me if I am exempt from Service Tax vide Clause 13 (4)
    Sincerely,
    Navin

      Reply
  15. Sudhir Dagar says:

    Sir good evening
    My business is hiring costume in school program
    Fancy dress supply in school
    Please tell me kya es kaam m koi tax h ?
    Agar h to service tax ya sale tax ?
    Or kitny %

    Mujhy kis tax ka no.regestration karana hoga

    Thank u

      Reply
  16. Prashant says:

    My client are dealing in a security systemLabour work like installation,commissionong,annual maintance .
    80%of our work is done in SEEPZ .
    Now in this year he had done a 6 lakh work in SEEPZ and 2 lakh work is out side SEEPZ.
    May he can cross the limit of 10 lakh in these year and done a approx 12 lakh invoice so can you guide he we have to go for a Service tax no.(Approx.8 lakh bussiness is in SEEPZ) 4 lakh outside SEEPZ.
    Waiting for guidens.

      Reply
  18. HEMANTRAO says:

    I am 80℅ disabled person. I got excise duty relief also got also got car insurance at such scheme.
    But on car insurance premium include 14℅ service tax.
    My question is about service tax exemption for disabled.

      Reply
  19. RAKESH S says:

    WHICH ARE THE PRIVATE HOSPITALS PROVIDE SERVICE TO GOVERNMENT OF KARNATAKA AND ALSO WHICH ARE THE PRIVATE HOSPITALS GET EXEMPTION FROM SERVICE TAX IN KARNATAKA

      Reply
  20. sunil mankesh says:

    sir me ek propritorship kr rha u visa services jo ki service tax me exempt h lakin bank account ke lye service tax registration krana hoga to sir muje help chaie ki knse category means ki service ke andr registration krau plz hlp…

      Reply
  23. harshad gadara says:

    is that service tax applicable on individual material ( form home use material )for export from india to other contriy

    please suggest with notification refrance
    Thanks
    Harshad

      Reply
  24. sagar gurav says:

    we have revived tender for water treatment work for mtdc (maharashtra govt) for adventure sports complex. work has been completed and now service tax department is asking for tax, i want to know whether is covers under mega tax exemption or not . pl guide

      Reply
  26. RAMESH JADHAV says:

    whether Cargo handling services and Clearing and forwarding services are same with reference to Service Tax liability.

      Reply
  28. T M Chowdary says:

    I have recently undertaken to transfer foriegn Sailors from their warships from ship to shore and shore to ship using fishing trawlers. The Contract award is the Defence Expo a Unit of The Indian Navy, Ministry of Defence. Will Service Tax apply. My contract is the daily hire for fifteen days such boats.

      Reply
  31. suresh says:

    Dear Sir,

    I am a small contractor doing maintenance contract of State govt Hospital for electrical works through PWD . The total order value on annual basis is about Rs 2000000.00 ,till now they have been paying service tax extra , but now PWD is saying service tax not applicable . Kindly advise.

    with best regards
    suresh

      Reply
  35. Rakesh Saran says:

    We are constructing a govt. ITI Collage received through etenders conducted by P.W.D. Rajasthan & agreement for work was done in the year 2013-14 & payments are being made by govt. through P.W.D. Please advice that wether such nature of work is exempted by Service Tax or not ? Although it is crear by GURUTAX that such services are being exempted from such tax but few people are saying that an amendment was done in the month of june2015 & a circular was issued stating that such services are also excluded from exemption category & now Service Tax is applicable on such services. So please clear the confusion & helpus.

      Reply
  36. shreekant vyas says:

    contruction of govt. college building contruction by contractor tender by pwd rajasthan what is service tax position? wether exempted or not

      Reply
  37. SWAPAN PAUL says:

    Dear Sir,

    We have received job work from Chittaranjan Locomotive Works for Piping Work in Electric Loco. The scope is all materials will provide by railway and we will only provide manpower for piping work in Electric Loco. Is this job consider for Service Tax Exemption?

      Reply
  41. Prakash Salve says:

    Please let me know whether, Extension of Jetty work at Port Blair, Andaman Nicobar. Under Military Engineer Services, Govt. Of India. Is this work is entitled for exemption of Service Tax?

      Reply
  42. ASHOK RANG says:

    A private limited company gives out its building to an educational trust, running a boarding school. Does it attract Service Tax?

      Reply
  44. arham says:

    dear sir,
    we have a client ICAR (INDIAN COUNCIL OF AGRICULTURE RESEARCH.
    WE PROVIDE SERVICE TO THEM BY SUPPLYING MANPOWER AS JOB CONTRACT.

    WE HAVE CHARGED THEM THE SERVICE TAX , BUT THEY DENIED SAYING THEY ARE EXEMTED FOR SERVICE TAX. WHEN WE ASKED FOR SERVICE TAX EXEMPTED PAPER. THEY HAVE NOT GIVEN ANY PAPER TO US. SAYING YOU CAN FIND THE CIRCULAR ON NET.
    PLEASE GUIDE. SHALL WE DEPOSIT THE SERVICE TAX. OR ANY OTHER OPTION IS THERE

      Reply
  49. adv. dr.g.balakrishnan says:

    GOOD CIRCULAR INDEED.
    SERVICES TAXES BURDENED ALL, THANK GOD MEANINGFULLY HANDLED BY ARUN JAITLEY AS FM, AFTER HE IS A GOOD LOGICIAN TOO.

      Reply

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