<h1>2007 Budget Doubles Exemptions for Small Service Providers, Expands Tax Base to Telecom and Mining Sectors.</h1> The 2007 Budget introduced significant changes to service tax regulations. The threshold exemption for small service providers increased from Rs. 4 lakh to Rs. 8 lakh, and the registration limit rose from Rs. 3 lakh to Rs. 7 lakh. Despite these changes, recipients of services liable to pay tax under section 68(2) remain unaffected. The service tax base expanded to include telecommunication, mining, renting of immovable property, and works contracts, among others. Amendments were made to existing services like rent-a-cab and event management, clarifying tax liabilities. Some sectors may challenge new levies, anticipating potential litigation and seeking exemptions.