MAJOR AMENDMENTS IN SERVICE TAX EXEMPTIONS IN 2015

Amendments made by Notification No. 6/2015-ST dated 1.3.2015 w.e.f. 1.4.2015 or notified date (01.06.2015)

The following changes (new exemptions, withdrawal of existing exemptions or rationalization of exemptions) have been made vide Notification No. 6/2015-ST dated 1.3.2015 w.e.f. 1.4.2015 or notified date. The parawise and entry wise changes are as follows:-

1. Entry 2 – Services provided by way of transportation of patients in an ambulance exempted;
2. Entry 12 – Exemption to 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;

(c) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment;

(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 65B of the said Act;

has been withdrawn.

3. Entry 14 - Exemption to services by way of construction, commissioning or installation of original works pertaining to an airport or port has been withdrawn;
4. Entry 16 – Exemption to services provided by a performing artist in folk or classical art form of music or dance or theatre restricted to such cases where amount charged is up to rupees one lakh for a performance.
5. Entry 20 – Exemption to services of transportation of food stuff by rail or vessels will be restricted to milk, salt and foodgrain including flours, pulses and rice.
6. Entry 21 – Exemption to services of goods transport agency for transportation of goods in a goods carriage of food stuff will be restricted to milk, salt and foodgrains including flours, pulses and rice;
7. Entry 26A – Life insurance services provided by way of Varishtha Pension Bima Yojna has been exempted;
8. Entry 29 – Exemption has been withdrawn on services provided by a mutual fund agent to a mutual fund or assets management company, distributor to a mutual fund or AMC and selling or marketing agent of lottery ticket to a distributor;
9. Entry 30 – Exemption to carrying out an intermediate production process as job work will exclude carrying out of intermediate production process of alcoholic liquor for human consumption on job work basis (from notified date);
10. Entry 32 – Exemption has been withdrawn on services of departmentally run public telephone, guaranteed public telephone operating only local calls and service by way of making telephone calls from free telephone at airport and hospital where no bill is issued.
11. New exemptions

43. Services by operator of Common Effluent Treatment Plant by way of treatment of effluent;

44. Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables;

45. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo;

46. Service provided by way of exhibition of movie by an exhibitor to the distributor or an association of persons consisting of the exhibitor as one of its members.

47. Services by way of right to admission to exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet; recognised sporting event and award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than ₹ 500 per person. (w.e.f. 1-6-2015).

Amendments made by Notification No. 12/2015-ST dated 30.04.2015

Following exemptions have been provided w.e.f. 30.04.2015 –

(a) Insurance schemes/Government schemes

(i) Pradhan Mantri Suraksha Bima Yojna (in Entry 26 of Notification No. 12/2015)

(ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (in Entry 26A of Notification No. 12/2015)

(iii) Pradhan Mantri Jan Dhan Yogana (in Entry 26A of Notification No. 12/2015)

(b) Exemption to Services by way of collection of contribution under Atal Pension Yojana (APY).

[Entry 26B]

Amendment made by Notification No. 20/2015-ST dated 21.10.2015

Following exemptions shall be allowed w.e.f. 21.10.2015 vide Notification No. 20/2015-ST dated 21.10.2015.

29 Services provided by

(g) business facilitator or a business correspondent to a banking company with respect to a Basic Savings Bank Deposit Account covered by Pradhan Mantri Jan Dhan Yojana in the banking company’s rural area branch, by way of account opening, cash deposits, cash withdrawals, obtaining e-life certificate, Aadhar seeding;

(ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g);

(gb) business facilitator or a business correspondent to an insurance company in a rural area.