Service tax exemption for small businesses: government and local authority services to entities below turnover threshold exempted. A new exemption entry is inserted in Notification No. 25/2012 exempting services provided by the Government or a local authority to a business entity with turnover up to the small business threshold in the preceding financial year. The amendment, made by Notification No. 07/2016 under the Finance Act, 1994, inserts the new entry after entry No. 47 and takes effect from 1 April 2016.