Meaning of exempted service

[Guest]

Under Cenvat Rules, whether exempted service means somthing which is not covered under the Service tax rules also ? If some service is not covered within the ambit of service tax can be termed as exempted service ?

[Guest]

As per Rule 2(e) of CC Rules, exempted services include services on which no service tax is leviable. Thus, an activity is in the nature of 'service' it will fall under the definition 'exempted service' even if it is not specifically exempted by way of notification etc under the Rules.

AI Summary

Exempted service includes any service on which no service tax is leviable, even if not specifically notified. Under Rule 2(e) of the CC Rules, an exempted service includes services on which no service tax is leviable; therefore, an activity that is in the nature of a service will be treated as an exempted service even if it is not specifically exempted by notification, so classification depends on levy status rather than presence in exemption schedules.