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Exhibit A3: Gist of other exemptions
A. Small scale exemption
1. For the service provider for the taxable services of aggregate value not exceeding ten lakh rupees in a financial year subject to certain conditions.
B. Exporters/ SEZ
2. Transportation of export goods by Goods Transport Agency in a goods carriage received by an exporter for transport of the said goods directly from -
i. any container freight station or inland container depot to the port or airport, from where the goods are exported;
ii. his place of removal, to an inland container depot, a container freight station, a port or airport, from where the goods are exported.
3. Refund of service tax paid on certain specified taxable services received by an exporter of goods and used for export of goods, subject to certain specified conditions.
4. Taxable services, received by a unit located in a Special Economic Zone or Developer of SEZ for the authorised operations.
C. Import of technology
5. Taxable service involving import of technology, from so much of service tax, as is equivalent to the extent of amount of cess payable on the said transfer of technology under the provisions of section 3 of the Research and Development Cess Act, 1986.
D. Services to foreign diplomatic mission
6. Taxable services provided for the official use of a foreign diplomatic mission or consular post in India, or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein.
E. Services by TBI or STEP
7. Taxable services provided by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India.
F. Renting of an immovable property
8. Taxable service of renting of an immovable property, from so much of the service tax leviable theron, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies.
G. Abatement
9. Exemption from so much of the service tax leviable, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (3) of the following Table, of the gross amount charged by such service provider for providing the said taxable service, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table:
Table
Sl. No. | Description of taxable service | Percent- age | Conditions |
(1) | (2) | (3) | (4) |
1 | Financial leasing services including equipment leasing and hire purchase | 10 | Nil. |
2 | Transport of goods by rail | 30 | Nil. |
3 | Transport of passengers, with or without accompanied belongings by rail | 30 | Nil. |
4 | Supply of food or any other article of human consumption or any drink, in a premises, including hotel, convention center, club, pandal, shamiana or any place specially arranged for organizing a function | 70 | CENVAT credit on any goods classifiable under chapter 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) has not been taken under the provisions of the CENVAT Credit Rules, 2004. |
5 | Transport of passengers by air, with or without accompanied belongings | 40 | CENVAT credit on inputs or capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. |
6 | Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes | 60 | Same as above. |
7 | Transport of goods by road by Goods Transport Agency | 25 | CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. |
8 | Services provided in relation to chit | 70 | Same as above. |
9 | Renting of any motor vehicle designed to carry passengers | 40 | Same as above. |
10 | Transport of goods in a vessel from one port in India to another | 50 | Same as above. |
11 | (i)Services provided or to be provided to any person, by a tour operator in relation to a package tour | 25 | (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour. |
| (ii)Services provided or to be provided to any person, by a tour operator in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour | 10 | (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (iii) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation. |
| (iii) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour | 40 | (i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
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Service tax exemptions narrow taxable base for exporters, SEZs, diplomats, incubators, renting and abatement regulated services. This summary sets out principal service tax exemptions and abatements: a small scale exemption subject to conditions; export and SEZ reliefs including transportation and refund mechanisms; exemption for imported technology to the extent of R&D cess; exemptions for services to foreign diplomatic missions and for services by recognised technology incubators; taxation of renting of immovable property net of property tax; and an abatement regime specifying percentage values and conditions, notably non-availability of CENVAT credit and invoicing requirements, for varied service categories.
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