The Central Government vide Notification No. 07/2016-Service Tax, Dated: February 18, 2016 amended the Mega Exemption Notification to provide exemption to Services provided by Government or a local authority to a business entity with a turnover up to Rs. 10 lacs in the preceding financial year.

Now, the Central Government vide Notification No. 26/2016-Service Tax, Dated: May 20, 2016 has provided that following services provided by Government or a local authority to a business entity with a turnover up to Rs. 10 lacs in the preceding financial year would be liable to service tax:

a) 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;

b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

c) services of transport of goods or passengers

d) 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),
NEW DELHI

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]

(Mohit Tiwari)

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.

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3 Comments

  1. Anil says:

    Sir

    Please clarify whether service tax is applicable on vending license at railway plateform awarded to private persons by railway administration.

  2. Anil says:

    Sir
    Please clarify whether service tax is applicable on vending license at railway plateform awarded to private persons by railway administration.

  3. Mohd Mohtashim says:

    Hi Experts,

    Given article is very useful. There is one very practical case where most of Indian people do not have clarity so if you can shed some light on that then it will be useful. For example one Indian company or person takes services from a freelancer who is not Indian then what rule of service tax is applicable on this? If this 10L rupees exempt limit applicable to that freelancer as well?

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