[TO BE PUBLISHED IN
THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
Government
of India
Ministry of Finance
Department of Revenue
Notification No.12/2012-Service
Tax
New
Delhi, the 17th March 2012
G.S.R. (E).- In exercise
of the powers conferred by sub-section (1) of section 93 of the Finance Act,
1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the
Central Government, being satisfied that it is necessary in the public interest
so to do, hereby exempts the following taxable services from the whole of the service tax leviable
thereon under section 66 B of the said Finance Act, namely:-
1.
Services provided to the United Nations or a specified
international organization;
2.
Health
care services by a clinical establishment, an authorised
medical practitioner or para-medics;
3.
Services
by a veterinary clinic in relation to health care of animals or birds;
4.
Services
by an entity registered under
section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable
activities;
5.
Services
by a person by way of-
(a)
renting
of precincts of a religious place meant for general public; or
(b)
conduct
of any religious ceremony;
6.
Services
provided to any person other than a business entity by -
(a)
an
individual as an advocate; or
(b)
a
person represented on and as arbitral tribunals;
7.
Services by way of technical testing or analysis of
newly developed drugs, including vaccines and herbal remedies, on human
participants by a clinical research organisation
approved to conduct clinical trials by the Drug Controller General of India;
8.
Services
by way of training or coaching in recreational activities relating to arts,
culture or sports;
9.
Services
provided-
(a)
to
an educational institution by way of catering under any centrally assisted mid – day meals scheme
sponsored by Government;
(b)
to
or by an institution in relation to educational services, where the educational
services are exempt from the levy of service tax, by way of transportation of students or staff;
(c)
to
or by an institution in relation to educational services, where the educational
services are exempt from the levy of service tax, by way of services in relation to admission to such
education;
10. Services provided to a recognised sports
body by-
(a)
an individual as a player, referee, umpire, coach
or manager for participation in a
tournament or championship organized by a recognized sports body;
(b)
another recognised sports
body;
11. Services by way of
sponsorship of tournaments or championships organised,-
(a)
by a national sports federation, or its affiliated federations, where the
participating teams or individuals represent any district, state or zone;
(b)
by Association of Indian Universities,
Inter-University Sports Board, School Games Federation of India, All India
Sports Council for the Deaf, Paralympic Committee of
India, Special Olympics Bharat;
(c)
by Central Civil Services Cultural and Sports
Board;
(d)
as part of national games, by Indian Olympic
Association; or
(e)
under Panchayat Yuva Kreeda Aur
Khel Abhiyaan (PYKKA)
Scheme;
12. Services provided
to the Government or local authority by way of erection, construction, maintenance, repair, alteration,
renovation or restoration of -
(a)
a
civil structure or any other original
works meant predominantly for a non-industrial or non-commercial use;
(b)
a historical monument, archaeological site or
remains of national importance, archaeological excavation, or antiquity
specified under Ancient Monuments and Archaeological Sites and Remains Act,
1958 (24 of 1958);
(c)
a structure meant predominantly for use as (i) an
educational, (ii) a clinical, or (iii)
an art or cultural establishment;
(d)
canal,
dam or other irrigation works;
(e)
pipeline,
conduit or plant for (i) drinking water supply (ii)
water treatment (iii)sewerage treatment
or disposal; or
(f)
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 65 B of the said Finance Act;
13. Services provided by
way of erection, construction,
maintenance, repair, alteration, renovation or restoration of,-
(a)
road,
bridge, tunnel, or terminal for road transportation for use by general public;
(b)
building
owned by an entity registered under section 12 AA of the Income tax Act,
1961(43 of 1961) and meant
predominantly for religious use by general public;
(c)
pollution
control or effluent treatment plant, except located as a part of a factory; or
(d)
electric
crematorium;
14. Services by way
of erection or construction of original works pertaining to,-
(a)
airport,
port or railways;
(b)
single
residential unit otherwise as a part of a residential complex;
(c)
low-
cost houses up to a carpet area of 60 square metres
per house in a housing project approved by competent authority empowered under
the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of
Housing and Urban Poverty Alleviation, Government of India;
(d)
post-
harvest storage infrastructure for agricultural produce including a cold
storages for such purposes; or
(e)
mechanised food grain handling
system, machinery or equipment for units
processing agricultural produce
as food stuff excluding alcoholic beverages;
15. Temporary transfer or permitting the use or enjoyment of a copyright
covered under clause (a) or (b) of sub-section (1) of section 13 of the Indian
Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic,
musical, artistic works or cinematograph films;
16. Services by a
performing artist in folk or classical art forms of (i)
music, or (ii) dance, or (iii) theatre, excluding services provided by such
artist as a brand ambassador;
17. Services by way of collecting or providing news by an independent
journalist, Press Trust of India or United News of India;
18. Services by way
of renting of a hotel, inn, guest house, club, campsite or other commercial
places meant for residential or lodging purposes, having declared tariff of a
room below rupees one thousand per day or equivalent;
19. Services provided in relation to serving
of food or beverages by a restaurant, eating joint or a mess, other than those having the facility of
air-conditioning or central air-heating in any part of the establishment, at
any time during the year, and which has a licence to serve alcoholic beverages;
20.
Services by way of transportation by rail or a vessel from one port in India to
another of the
following goods -
(a)
petroleum
and petroleum products falling under Chapter heading 2710 and 2711 of the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986);
(b)
relief
materials meant for victims of natural or man-made disasters, calamities,
accidents or mishap;
(c)
defence or military equipments;
(d) postal mail, mail bags or household
effects;
(e)
newspaper
or magazines registered with Registrar of Newspapers;
(f)
railway equipments or materials;
(g)
agricultural produce;
(h)
foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic
beverages; or
(i)
chemical fertilizer and oilcakes;
21.
Services provided by a goods transport agency by way of transportation of -
(a)
fruits,
vegetables, eggs, milk, food grains or pulses in a
goods carriage;
(b)
goods
where gross amount charged on a consignment transported in a single goods carriage
does not exceed one thousand five hundred rupees; or
(c)
goods,
where gross amount charged for transportation of all such goods for a single
consignee in the goods carriage does not exceed rupees seven hundred fifty;
22. Services by way of
giving on hire -
(a)
to
a state transport undertaking, a motor vehicle meant to carry more than twelve
passengers; or
(b)
to
a goods transport agency, a means of transportation of goods;
23. Transport of
passengers, with or without accompanied belongings, by -
(a)
air,
embarking or terminating in an airport located in the state of Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at
Baghdogra located in West Bengal; or
(b)
a contract carriage for the transportation of
passengers, excluding tourism, conducted tour, charter or hire;
24. Services by way
of motor vehicle parking to general public excluding leasing of space to an
entity for providing such parking facility;
25. Services provided to the Government or a
local authority by way of -
(a)
repair
of a ship, boat or vessel;
(b)
effluents
and sewerage treatment;
(c)
waste
collection or disposal;
(d)
storage,
treatment or testing of water for drinking purposes; or
(e)
transport
of water by pipeline or conduit for drinking purposes;
26. Services of general insurance business provided under
following schemes -
(a)
Hut
Insurance Scheme;
(b)
Cattle
Insurance under Swarnajaynti Gram Swarozgar
Yojna (earlier known as Integrated Rural
Development Programme);
(c)
Scheme
for Insurance of Tribals;
(d)
Janata Personal
Accident Policy and Gramin Accident Policy;
(e)
Group Personal Accident Policy for Self-Employed Women;
(f)
Agricultural Pumpset and Failed Well
Insurance;
(g)
premia collected on export credit insurance;
(h)
Weather Based Crop Insurance Scheme or the Modified National
Agricultural Insurance Scheme, approved by the Government of India and
implemented by the Ministry of Agriculture;
(i)
Jan Arogya Bima
Policy;
(j)
National Agricultural Insurance Scheme (Rashtriya
Krishi Bima Yojana);
(k)
Pilot Scheme on Seed Crop Insurance;
(l)
Central Sector Scheme on Cattle Insurance;
(m)
Universal Health Insurance Scheme;
(n)
Rashtriya Swasthya
Bima Yojana; or
(o)
Coconut
Palm Insurance Scheme;
27. Services provided by an incubatee up to a total business turnover of fifty lakh
rupees in a financial year subject
to the following conditions, namely:-
(a) the total business turnover had not exceeded fifty
lakh rupees during the preceding financial year; and
(b)
a
period of three years has not lapsed
from the date of entering into an
agreement as an incubatee;
28. Service by an unincorporated body or an
entity registered as a society to own members by way of reimbursement of
charges or share of contribution -
(a)
as
a trade union;
(b)
for
the provision of exempt services by the entity to third persons; or
(c)
up
to an amount of five thousand rupees per month per member for sourcing of goods
or services from a third person for the common use of its members in a housing
society or a residential complex;
29.
Services by the following persons in respective capacities -
(a)
a
sub-broker or an authorised person to a stock broker;
(b)
an
authorised person to a member of a commodity exchange;
(c)
a
mutual fund agent or distributor to mutual fund or asset management company for
distribution or marketing of mutual fund;
(d)
a
selling or marketing agent of lottery tickets to a distributer or a selling
agent;
(e)
a
selling agent or a distributer of
(f)
a
business facilitator or a business correspondent to a banking company or an
insurance company in a rural area;
30. Carrying out an
intermediate production process as job work in relation to -
(a)
agriculture,
printing or textile processing;
(b)
cut
and polished diamonds and gemstones; or plain and studded jewellery of gold and
other precious metals, falling under Chapter 71 of the Central Excise Tariff
Act ,1985 (5 of 1986);
(c)
any
goods on which appropriate duty is payable by the principal manufacturer; or
(d) processes of electroplating, zinc plating, anodizing, heat
treatment, powder coating, painting including spray painting or auto black, during
the course of manufacture of parts
of cycles
or sewing machines upto an aggregate
value of taxable service of the specified processes of one hundred and fifty lakh rupees in a
financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the
preceding financial year;
31. Services by an organiser to any person in respect of a business exhibition
held outside India;
32. Services by way
of making telephone calls from -
(a)
departmentally
run public telephones;
(b)
guaranteed
public telephones operating only for local calls; or
(c)
free
telephone at airport and hospitals where no bills are being issued;
33. Services by way of slaughtering of bovine
animals;
34. Services
received from
a service provider located in a non- taxable territory by -
(a)
the
Government, a local authority or an individual in relation to any purpose other than industry,
business or commerce; or
(b)
an entity registered under section 12AA of the Income tax Act, 1961 (43 of
1961) for the purposes of providing charitable activities.
2. Definitions. - for the purpose of this notification,
unless the context otherwise requires, –
1.
“advocate”
has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of
the Advocates Act, 1961 ( 25 of 1961),
2.
“appropriate
duty” means duty payable on manufacture or production under a Central or a
State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt,
3.
“arbitral tribunal” has the meaning assigned
to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996
(26 of 1996),
4.
“authorised medical
practitioner” means any medical practitioner registered with any of the
Councils of the recognised system of medicine
and includes medical professional having the requisite qualification to
practice in any recognised system of medicine as per
any law for the time being in force,
5.
"authorised
person” means and includes any person whether being an individual, partnership
firm, limited liability partnership or body corporate, who is appointed as such
either by a stock broker including trading member or by a member of commodity
exchange and who provides access to trading platform of a stock exchange or a
commodity exchange, as an agent of the stock broker or member of a commodity
exchange,
6.
“banking
company” has the meaning assigned to it in clause (a) of section 45A of the
Reserve Bank of India Act,1934(2 of 1934),
7.
“business
facilitator or business correspondent” means an intermediary appointed under
business facilitator model or business correspondent model by a banking company
or an insurance company under the guidelines issued by Reserve Bank of India,
8.
"clinical
establishment" means a hospital, nursing home, clinic, sanatorium or
an institution by, whatever name called, that offers services or
facilities requiring diagnosis or treatment or care for illness, injury,
deformity, abnormality or pregnancy in any recognised system of medicine,
established and administered or maintained by any person or a place established
as an independent entity or a part of an establishment to carry out
diagnostic or investigative services of diseases,
9. “charitable activities” means activities relating to -
(a)
public
health by way of -
(I)
care or counseling of (i)
terminally ill persons or persons with
severe physical or mental disability, (ii) persons afflicted with HIV or
AIDS, or (iii) persons addicted to a dependence-forming substance such as
narcotics drugs or alcohol; or
(II)
public
awareness of preventive health, family planning or prevention of HIV infection;
(b)
advancement
of religion;
(c)
advancement
of educational programmes or skill development relating to,-
(I)
abandoned,
orphaned or homeless children;
(II)
physically
or mentally abused and traumatized persons;
(III)
prisoners;
or
(IV)
persons
over the age of 65 years residing in a rural area;
(d)
preservation
of environment including watershed, forests and wildlife; or
(e)
advancement
of any other object of general public utility up to a value of twenty five lakh rupees in a financial year subject to the condition
that total value of such activities had not exceeded twenty five lakhs rupees
during the preceding financial year.
Explanation: - For the purpose of
this clause, ‘general public’ means the body of
people at large sufficiently defined by some common quality of public or
impersonal nature.
10. “commodity exchange” means an
association as defined in section 2 (j) and recognized under section 6 of the
Forward Contracts (Regulation) Act,1952 (74 of 1952),
11. “contract carriage” has the meaning assigned to it in clause
(7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988),
12. “declared tariff”
includes charges for all amenities provided in the unit of accommodation (given
on rent for stay) like furniture, air-conditioner, refrigerators or any other
amenities, but does not include any discount offered on the published charges
for such unit,
13. “distributor or
selling agent” has the meaning assigned to them in clause (c) of the rule 2 of
the Lottery (Regulation) Rules, 2010 notified by the Government of India in the
Ministry of Home Affairs published in the Gazette of India, Extraordinary, Part-II,
Section 3, Sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall
include distributor or selling agent authorised by the lottery organising
State,
14. "general insurance business" has the meaning assigned to
it in clause (g) of section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972),
15. “goods carriage” has the meaning assigned to it in clause
(14) of section 2 of the Motor Vehicles
Act, 1988 (59 of 1988),
16.“health care
services” means any service by way of
diagnosis or treatment or care for illness, injury, deformity,
abnormality or pregnancy in any recognised system of medicine and includes
services by way of supply of meals for the patient or transportation of the
patient to and from a clinical establishment, but does not include hair
transplant or cosmetic or plastic surgery, except when undertaken to restore or
to reconstruct anatomy or functions of body affected due to congenital defects,
developmental abnormalities, injury or trauma,
17.“incubatee”
means an entrepreneur located within the premises of a Technology Business
Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology
Entrepreneurship Development Board (NSTEDB) of the Department of Science and
Technology, Government of India and who has entered into an agreement with the
TBI or the STEP to enable himself to develop and produce hi-tech and innovative
products,
18.“insurance
company” means a company carrying on
life insurance business or general insurance business,
19.“life
insurance business” has the meaning assigned to it in clause (11) of section 2
of the Insurance Act, 1938 (4 of 1938),
20. “original works” means -
(a)
all
new constructions; or
(b)
all
types of additions and alterations to abandoned or damaged structures on land
that are required to make them workable,
21. “principal manufacturer” means any person who gets goods
manufactured or processed on his account
from another person,
22. “recognized
sports body” means (i) the Indian Olympic
Association, (ii) Sports Authority of India, (iii) a national sports federation
recognised by the Ministry of Sports and Youth
Affairs of the Central Government, and its affiliate federations, (iv) national sports
promotion organisations recognised
by the Ministry of Sports and Youth Affairs of the Central Government, (v) the
International Olympic Association or a federation recognised by the
International Olympic Association or (vi) a federation or a body which
regulates a sport at international level,
23. “religious place” means a place which is primarily meant for
conduct of prayers or worship pertaining to a religion,
24. “residential complex” means any complex comprising of a
building or buildings, having more than one single residential unit,
25.“rural
area” means the area comprised in a village as defined in land revenue records,
excluding,-
(i)
the
area under any municipal committee, municipal corporation, town area committee,
cantonment board or notified area committee; or
(ii)
any
area that may be notified as an urban area by the Central Government or a State
Government,
26. “single residential unit” means an independent residential
unit with specific facilities for living, cooking and sanitary requirements,
27. "specified international organisation"
means an international organisation declared by the
Central Government in pursuance of section 3 of the United Nations (Privileges
and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule
to the said Act apply,
28. "state transport undertaking" has the meaning assigned
to it in clause (42) of Section 2 of the
Motor Vehicles Act, 1988 (59 of 1988),
29.
"sub-broker" has the meaning assigned to it
in sub-clause (gc) of clause 2 of the Securities and
Exchange Board of India (Stock Brokers and Sub-brokers) (Second Amendment)
Regulations, 2006,
30.“trade union” has
the meaning assigned to it in clause (h) of section 2 of the Trade Unions
Act,1926(16 of 1926).
3. This notification shall come into force from the date on which section
66B of the Finance Act, 1994 comes into effect.
[F. No. 334/1/2012-TRU]
(Samar
Nanda)
Under Secretary to the Government