Dr. Sanjiv Agarwal

We are at the beginning of financial year 2015-16 now and it is time to realize and accept that exemption regime of Service Tax has changed with effect from 1st April, 2015 backed by Notification No. 6/2015-ST dated 1.3.2015, amending the mega exemption Notification No. 25/2012-ST dated 20.06.2012. Most of these amendments shall be effective from April 1, 2015 except few which shall be applicable from a notified date after the enactment of Finance Bill, 2015. This may happen sometime in June / July 2015.

The exemptions could be classified into new exemptions, exemptions withdraws and modifications in exemptions. To provide clarity to the scope of exemptions, new definitions of national park, recognized sporting event, tiger reserve, wildlife sanctuary and zoo have been inserted.

The following amendments in exemptions and new amendments w.e.f. dates as indicated are note worthy-

Service Tax exemption effective April, 2015

Exemptions play an important role, at least for assessees, in service taxation. The Budget proposals have made certain amends in the exemptions under Service Tax by way of announcing new exemptions, withdrawal of some existing exemptions and rationalization of certain other exemptions to bring them in line with change in law or to expand the scope of Service Tax. This article discusses the changes in exemptions w.e.f. 1st April, 2015.

(a) New exemptions

Following new exemptions shall be available to service providers under Notification No. 25/2012-ST dated 20.06.2012 as amended by Notification No. 6/2015-ST dated 1.3.2015.

  • Service provided by a Common Effluent Treatment Plant operator for treatment of effluent has been exempted. (New entry at S.No. 43)
  • Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables has been exempted. (New entry at S.No. 44)
  • Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve has been exempted. These services when provided by the Government or local authority are already covered by the Negative List. (New entry at S.No. 45)
  • Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or an association of persons consisting of such exhibitor as one of it’s members has been exempted. (New entry at S.No. 46)

(b) Expansion of existing exemptions under Notification No. 25/2012-ST

  • Hitherto, any service provided by way of transportation of a patient to and from a clinical establishment by a clinical establishment is exempt from Service Tax. The scope of this exemption has been widened to include all ambulance services. (Entry No. 2)
  • Life insurance service provided by way of Varishtha Pension Bima Yojna has been exempted.(Entry No. 26A)

(c) Expansion of exemption under Notification No. 31/2012-ST for GTA services

Goods transport agency service provided for transport of export goods by road from the place of removal to an inland container depot, a container freight station, a port or airport is exempt from Service Tax vide Notification No. 31/12-ST dated 20.6.2012. The scope of this exemption has been widened to exempt such services when provided for transport of export goods by road from the place of removal to a Land Customs Station (LCS).(Vide Notification No. 4/2015-ST dated 1.3.2015).

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0 responses to “Service Tax Exemptions from 1st April, 2015”

  1. samarth gupta says:

    https://taxguru.in/service-tax/service-tax-exemptions-1st-april-2015.html

    Whether service is exempted for repair and maintenance of road,operation and maintainance andepair and maintaince of buildings.

    Sir please reply ASAP

  2. V. Srinivasa Murthy says:

    Want to know applicability of Service tax for education ( Tutions given ) by a team.

  3. rajasekhar says:

    is service tax on cine actress is exempt. from which date is exempt

  4. k.swamy says:

    Dear Sir,

    just i want to clarify about service tax will be applicable on CSR activity or not, if applicable on which particular activity.

  5. Nihar Satpathy says:

    Dear Sir
    Please guide me about exemption of service tax through sanitation and human Weaste management.

  6. u niranjankumar says:

    plz giv us information and G O NUMBERS IF ANY regarding latest exemptions from service tax for MANPOWER RECRUITMENT/SUPPLY AGENCY SERVICE and for security services

  7. Anand W says:

    Please clarify if coaching training provided by various institutions e.g. FITJEE, Vidyamandir Classes, Akash for IIT preparation comes under service tax category.

  8. AN Singh says:

    I have paid service tax during 2010-11. Affter that my income reduced below 10 lakhs/financial year. After an interval of 4 years now during 2015-16 I am likely to increase my income more than 10 Lakhs. Please advise what will be my liability for the service tax.

    Thanks

  9. anand says:

    We are providing online and data processing services(admissions and exams related) to universities, i want to know is it come under service tax exemption or not.

    Thanks and regards
    Anand

  10. Srinivas K.n says:

    Wether service is ex empted for catering services who supply bulk food to industries

  11. santosh sony says:

    Dear Sir/Mam

    Major issue in service tax, A is exporting (Clinical testing Outside india).he receives report from foreign doctor by email.is such service provided by A to indian patient is exempt from service tax?

  12. prasad raju says:

    Sir we are executing civil works( cyclone shelters ) under Natonal disaster management program funded by world bank in Andrapradesh state. Executing agency is A.P State Panchyat raj engineering Departement

  13. santosh kumar says:

    We are registered ngo under society act1956.we’re providing Genrator facilities,fooding to the patients and sanitation facilities in government hospital.whether service tax applicable

  14. krunal patel says:

    Dear sir,
    Please give us right information for service tax exemption in construction of police station in 2015-16

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