Services provided by the government /local authority to the business entity

Government service exemption shields certain services to business entities from service tax, subject to specified exclusions.

Exemption from service tax applies to services provided by the Government or a local authority to business entities meeting the turnover criterion, while expressly excluding services specified under section 66D sub-clauses and renting of immovable property. Definitions of 'governmental authority', 'Government' and 'local authority' delimit which bodies qualify, with qualifying governmental authorities characterized by statutory creation or government establishment and predominant public participation, and Government excluding entities whose accounts are not maintained under the cited constitutional provision.