New Exemptions

[Admin TMI]

Question - What are new exemptions proposed in service tax in Finance Bill 2015 ?

[Admin TMI]

Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables is being exempted.

• Service provided by a Common Effluent Treatment Plant operator for treatment of effluent is being exempted.

• Life insurance service provided by way of Varishtha Pension Bima Yojna is being exempted.

• Service provided by way of exhibition of movie by the exhibitor (theatre owner) to the distributor or association of persons consisting of such exhibitor as one of it’s members is being exempted.

• 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 is being widened to include all ambulance services.

• Service provided by way of admission to a museum, zoo, national park, wild life sanctuary,and a tiger reserve is being exempted.

• 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. Scope of this exemption is being 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).

[All the above New Exemptions shall come into effect from the 1st day of April, 2015]

AI Summary

Service tax exemptions expanded to include specific agricultural, transport, health and cultural services under the Finance Bill. Finance Bill 2015 proposes targeted service tax exemptions effective 1 April 2015, exempting specified services including pre-conditioning and packing of fruits and vegetables, Common Effluent Treatment Plant operator services, Varishtha Pension Bima Yojna life insurance service, exhibition-of-movie services by exhibitors to distributors, all ambulance services, goods transport agency services for export goods to land customs stations, and admission to museums, zoos, national parks, wildlife sanctuaries and tiger reserves.