[TO BE PUBLISHED IN THE GAZZETE OF
Government
of India
Ministry of Finance
(Department of Revenue)
Notification
No. 25/2012-Service Tax
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 Act) and in
supersession of notification number 12/2012- Service Tax, dated the 17th
March, 2012, published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March,
2012, 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 66B of the said 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 by-
(a) an arbitral tribunal to -
(i) any person other than a business entity; or
(ii)
a business entity with a turnover up to rupees ten
lakh in the preceding financial year;
(b)
an individual as an advocate or a partnership
firm of advocates by way of legal
services to,-
(i) an advocate or
partnership firm of advocates providing legal services ;
(ii) any person other
than a business entity; or
(iii) a business entity
with a turnover up to rupees ten lakh in the preceding financial year; or
(c)
a person represented on an arbitral tribunal to
an arbitral tribunal;
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 to or by an educational
institution in respect of education exempted from service tax, by way
of,-
(a) auxiliary
educational services; or
(b) renting
of immovable property;
10. Services provided to a recognised sports
body by-
(a)
an
individual as a player, referee, umpire, coach or team manager for
participation in a sporting event organized by a recognized sports body;
(b) another recognised sports
body;
11. Services
by way of sponsorship of sporting events 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 or 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, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out,
repair, maintenance, renovation, or alteration of -
(a) a
civil structure or any other original
works meant predominantly for use other
than for commerce, industry, or any other business or profession;
(b) a historical monument, archaeological site or
remains of national importance, archaeological excavation, or antiquity
specified under the 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) water supply (ii) water treatment, or (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 Act;
13. Services
provided by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation, or
alteration of,-
(a)
a road, bridge, tunnel, or
terminal for road transportation for use by general public;
(b)
a civil structure or any other original works pertaining to a
scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;
(c)
a 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;
(d)
a pollution control or effluent
treatment plant, except located as a part of a factory; or
a
structure meant for funeral, burial or cremation of deceased;
14. Services by way of construction,
erection, commissioning, or installation of original works pertaining to,-
(a) an
airport, port or railways, including monorail or metro;
(b) a single residential unit
otherwise than 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 clauses (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 unit of accommodation 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 (i) the facility of air-conditioning or central air-heating in any part
of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages;
20. Services by way of transportation by rail or a vessel from one
place 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 or mail
bags;
(e) household effects;
(f) newspaper or magazines
registered with the Registrar of Newspapers;
(g) railway equipments or materials;
(h) agricultural
produce;
(i)
foodstuff including flours, tea,
coffee, jaggery, sugar, milk products, salt and edible oil, excluding
alcoholic beverages; or
(j)
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 for the transportation of goods 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 from or terminating in an airport located in the state of Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at
Bagdogra located in West Bengal;
(b) a
contract carriage for the transportation of passengers, excluding tourism,
conducted tour, charter or hire; or
(c)
ropeway, cable car or aerial tramway;
24.
Services by way of vehicle parking to general public excluding leasing of space
to an entity for providing such parking facility;
25.
Services provided to Government, a local authority or a governmental authority
by way of -
(a) carrying
out any activity in relation to any function ordinarily entrusted to a
municipality in relation to water supply, public health, sanitation
conservancy, solid waste management or slum improvement and upgradation;
or
(b) repair
or maintenance of a vessel or an aircraft;
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
turnover of fifty lakh rupees in a financial year subject to the following conditions,
namely:-
(a) the total turnover had not exceeded fifty
lakh rupees during the preceding financial year; and
(b) a
period of three years has not been elapsed
from the date of entering into an
agreement as an incubatee;
28.
Service by an unincorporated body or a non- profit entity registered under any
law for the time being in force, to its own members by way of reimbursement of
charges or share of contribution -
(a) as
a trade union;
(b) for
the provision of carrying out any activity which is exempt from the levy of
service tax; 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) sub-broker
or an authorised person to a stock broker;
(b) authorised person
to a member of a commodity exchange;
(c)
mutual fund agent to a mutual
fund or asset management company;
(d) distributor
to a mutual fund or asset management company;
(e) selling
or marketing agent of lottery tickets to a distributer or a selling agent;
(f)
selling agent or a distributer
of SIM cards or recharge coupon vouchers;
(g) business
facilitator or a business correspondent to a banking company or an insurance
company, in a rural area; or
(h) sub-contractor
providing services by way of works contract to another contractor
providing works contract services which
are exempt;
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 telephone;
(b) guaranteed
public telephone operating only for local calls; or
(c)
free telephone at airport and
hospital where no bills are being issued;
33.
Services by way of slaughtering of bovine animals;
34. Services received from a provider of
service located in a non- taxable
territory by -
(a) Government,
a local authority, a governmental authority or an individual in relation to any purpose other than commerce,
industry or any other business or profession;
(b) an
entity registered under
section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of
providing charitable activities; or
(c)
a person located in a
non-taxable territory;
35.
Services of public libraries by way of lending of books, publications or any
other knowledge- enhancing content or material;
36. Services by Employees’ State
Insurance Corporation to persons
governed under the Employees’
Insurance Act, 1948 (34 of 1948);
37. Services by way of transfer of a going
concern, as a whole or an independent part thereof;
38. Services by way of public conveniences
such as provision of facilities of bathroom, washrooms, lavatories, urinal or
toilets;
39. Services by a governmental authority by
way of any activity in relation to any function entrusted to a municipality
under article 243 W of the Constitution.
2.
Definitions. - For the purpose
of this notification, unless the context otherwise requires, –
(a) “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);
(b) “appropriate
duty” means duty payable on manufacture or production under a Central Act or a
State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt;
(c)
“arbitral tribunal” has the meaning assigned to it in clause (d) of
section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996);
(d)
“authorised medical practitioner” means a medical
practitioner registered with any of
the councils of the recognised system of medicines established or recognized by
law in India and includes a medical professional having the requisite
qualification to practice in any recognised system of
medicines in India as per any law for the time being in force;
(e)
"authorised person” means any person who is
appointed as such either by a stock broker (including trading member) or by a
member of a commodity exchange and who provides access to trading platform of a
stock exchange or a commodity exchange as an agent of such stock broker or
member of a commodity exchange;
(f)
“auxiliary educational services” means any services relating to imparting any
skill, knowledge, education or development of course content or any other
knowledge – enhancement activity, whether for the students or the faculty, or
any other services which educational institutions ordinarily carry out
themselves but may obtain as outsourced services from any other person,
including services relating to admission to such institution, conduct of
examination, catering for the students under any mid-day meals scheme sponsored
by Government, or transportation of students, faculty or staff of such
institution;
(g) “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);
(h) “brand ambassador” means a person
engaged for promotion or marketing of a brand of goods, service, property or
actionable claim, event or endorsement of name, including a trade name, logo or
house mark of any person;
(i) “business
facilitator or business correspondent” means an intermediary appointed under
the business facilitator model or the business correspondent model by a banking
company or an insurance company under the guidelines issued by Reserve Bank of
India;
(j) "clinical establishment" means
a hospital, nursing home,
clinic, sanatorium or any other 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 medicines in
India, or a place established as an independent entity or a
part
of an establishment to carry out diagnostic or investigative
services of diseases;
(k) “charitable activities” means
activities relating to -
(i) public
health by way of -
(a) 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
(b) public awareness of preventive
health, family planning or prevention of
HIV infection;
(ii) advancement
of religion or spirituality;
(iii) advancement
of educational programmes or skill development
relating to,-
(a) abandoned, orphaned or
homeless children;
(b) physically or mentally abused
and traumatized persons;
(c) prisoners; or
(d) persons over the age of 65
years residing in a rural area;
(iv) preservation
of environment including watershed, forests and wildlife; or
(v) advancement of any other object of general public utility up to a value
of,-
(a)
eighteen lakh and
seventy five thousand rupees for the year 2012-13 subject to the condition that
total value of such activities had not exceeded twenty five lakhs rupees during
2011-12;
(b) twenty five lakh rupees in any other financial year
subject to the condition that total value of such activities had not exceeded
twenty five lakhs rupees during the preceding
financial year;
(l) “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);
(m) “contract
carriage” has the meaning assigned to it in clause (7) of section 2 of the
Motor Vehicles Act, 1988 (59 of 1988);
(n)“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 without excluding any discount offered on the published charges
for such unit;
(o) “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;
(p) "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);
(q)“general
public” means the body of people at large
sufficiently defined by some common quality of public or impersonal nature;
(r)“goods
carriage” has the meaning assigned to it in clause (14) of section 2 of the
Motor Vehicles Act, 1988 (59 of 1988);
(s) “governmental authority’’
means a board, or an authority or any other body established with 90% or more
participation by way of equity or control by Government and set up by an Act of
the Parliament or a State Legislature to carry out any function entrusted to a
municipality under article 243W of the
Constitution;
(t) “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 medicines
in India and includes services by way of 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;
(u) “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;
(v)“insurance
company” means a company carrying on
life insurance business or general insurance business;
(w)“legal service” means any service provided in relation to
advice, consultancy or assistance in any branch of law, in any manner and
includes representational services before any court, tribunal or authority;
(x)“life
insurance business” has the meaning assigned to it in clause (11) of section 2
of the Insurance Act, 1938 (4 of 1938);
(y) “original
works” means has the meaning assigned to
it in Rule 2A of the Service Tax
(Determination of Value) Rules, 2006;
(z) “principal
manufacturer” means any person who gets goods manufactured or processed on his account from another person;
(za)
“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 and its affiliated federations or
bodies regulating a sport in India;
(zb)
“religious place” means a place which is primarily
meant for conduct of prayers or worship pertaining to a religion, meditation,
or spirituality;
(zc)
“residential complex” means any complex comprising of
a building or buildings, having more than one single residential unit;
(zd)“rural
area” means the area comprised in a village as defined in land revenue records,
excluding-
the area
under any municipal committee, municipal corporation, town area committee,
cantonment board or notified area committee; or
any area
that may be notified as an urban area by the Central Government or a State
Government;
(ze)“single residential unit” means
a self-contained residential unit which
is designed for use, wholly or principally, for residential purposes for one
family;
(zf) "specified
international organization" means an international organization 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;
(zg)"state transport
undertaking" has the meaning assigned to it in clause (42) of section 2 of
the Motor Vehicles Act, 1988 (59 of
1988);
(zh)"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)
Regulations, 1992;
(zi) “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 on
the 1st day of July, 2012.
[F. No.334/1/2012 -TRU]
(Rajkumar
Digvijay)
Under Secretary to the
Government of India