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<h1>Clarification on Service Tax: Government Services to Businesses Taxable from April 1, 2016, with Key Exemptions and CENVAT Credit Guidance.</h1> The circular clarifies the application of Service Tax on services provided by the government or local authorities to business entities effective April 1, 2016. Exemptions include services between governments, to individuals for specific documents, and for fines or penalties. Services provided in exchange for fees are taxable unless exempted under specific notifications. The circular also addresses Service Tax on natural resource assignments, spectrum user charges, and deferred payment options, with guidance on CENVAT Credit eligibility. It emphasizes that taxes, cesses, fines, and penalties are not subject to Service Tax, and provides detailed examples for clarity.