[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY,
PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No.
25/2012-Service Tax
New Delhi, the 20th June, 2012
G.S.R……(E).- In exercise of the powers conferred by
sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the said Act) and in supersession of notification
number 12/2012- Service Tax, dated the 17th March, 2012, published in the
Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide
number G.S.R. 210 (E), dated the 17th March, 2012, the Central Government,
being satisfied that it is necessary in the public interest so to do, hereby
exempts the following taxable services from the whole of the service tax
leviable thereon under section 66B of the said Act, namely:-
1. Services
provided to the United Nations or a specified international organization;
2. Health care
services by a clinical establishment, an authorised medical practitioner
or para-medics;
3. Services by a
veterinary clinic in relation to health care of animals or birds;
4. Services by an
entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by
way of charitable activities;
5. Services by a
person by way of-
(a) renting of
precincts of a religious place meant for general public; or
(b) conduct
of any religious ceremony;
6, Services provided by-
(a) an arbitral
tribunal to -
(i) any person other
than a business entity; or
(ii) a business entity with a turnover up to rupees ten lakh
in the preceding financial year;
(b) an individual as an advocate or a partnership
firm of advocates by way of legal
services to,-
(i) an advocate or partnership firm of
advocates providing legal services ;
(ii) any
person other than a business entity; or
(iii) a
business entity with a turnover up to rupees ten lakh in the preceding
financial year; or
(c) a person represented on an arbitral tribunal
to an arbitral tribunal;
7. Services by way of
technical testing or analysis of newly developed drugs, including vaccines and
herbal remedies, on human participants by a clinical research organisation
approved to conduct clinical trials by the Drug Controller General of India;
8. Services by way of
training or coaching in recreational activities relating to arts, culture or
sports;
9. Services provided to or by an educational
institution in respect of education
exempted from service tax, by way of,-
(a) auxiliary
educational services; or
(b) renting of
immovable property;
10. Services provided to a recognised sports body by-
(a) an individual as
a player, referee, umpire, coach or team manager for participation in a
sporting event organized by a recognized sports body;
(b) another
recognised sports body;
11. Services by way
of sponsorship of sporting events organised,-
(a) by a national
sports federation, or its affiliated federations, where the participating teams
or individuals represent any district, state or zone;
(b) by Association
of Indian Universities, Inter-University Sports Board, School Games Federation
of India, All India Sports Council for the Deaf, Paralympic Committee of India
or Special Olympics Bharat;
(c) by Central
Civil Services Cultural and Sports Board;
(d) as part of
national games, by Indian Olympic Association; or
(e) under
Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;
12. Services provided to the Government, a local authority
or a governmental authority by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation, or
alteration of -
(a) a civil structure
or any other original works meant
predominantly for use other than for
commerce, industry, or any other business or profession;
(b) a historical
monument, archaeological site or remains of national importance, archaeological
excavation, or antiquity specified under the Ancient Monuments and
Archaeological Sites and Remains Act, 1958 (24 of 1958);
(c) a structure
meant predominantly for use as (i) an
educational, (ii) a clinical, or (iii)
an art or cultural establishment;
(d) canal, dam or
other irrigation works;
(e) pipeline, conduit
or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment
or disposal; or
(f) a residential
complex predominantly meant for self-use or the use of their employees or other
persons specified in the Explanation 1 to clause 44 of section 65 B of the said
Act;
13. Services provided
by way of construction, erection, commissioning, installation, completion,
fitting out, repair, maintenance, renovation, or alteration of,-
(a) a road,
bridge, tunnel, or terminal for road transportation for use by general public;
(b) a civil
structure or any other original works
pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or
Rajiv Awaas Yojana;
(c) a building
owned by an entity registered under section 12 AA of the Income tax Act,
1961(43 of 1961) and meant predominantly for religious use by general public;
(d) a pollution
control or effluent treatment plant, except located as a part of a factory; or
a structure meant for funeral, burial or cremation of
deceased;
14. Services by way of construction, erection,
commissioning, or installation of original works pertaining to,-
(a) an airport, port
or railways, including monorail or metro;
(b) a single
residential unit otherwise than as a part of a residential complex;
(c) low- cost houses
up to a carpet area of 60 square metres per house in a housing project approved
by competent authority empowered under the ‘Scheme of Affordable Housing in
Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation,
Government of India;
(d) post- harvest
storage infrastructure for agricultural produce including a cold storages for
such purposes; or
(e) mechanised food
grain handling system, machinery or equipment for units processing
agricultural produce as food stuff excluding alcoholic beverages;
15. Temporary transfer or permitting the use or enjoyment of
a copyright covered under clauses (a) or (b) of sub-section (1) of section 13
of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary,
dramatic, musical, artistic works or cinematograph films;
16. Services by a performing artist in folk or classical art
forms of (i) music, or (ii) dance, or (iii) theatre, excluding services
provided by such artist as a brand ambassador;
17. Services by way
of collecting or providing news by an independent journalist, Press Trust of
India or United News of India;
18. Services by way of renting of a hotel, inn, guest house,
club, campsite or other commercial places meant for residential or lodging
purposes, having declared tariff of a unit of accommodation below rupees one
thousand per day or equivalent;
19. Services provided in relation to serving of food or
beverages by a restaurant, eating joint or a
mess, other than those having (i) the facility of air-conditioning or
central air-heating in any part of the establishment, at any time during the
year, and (ii) a licence to serve alcoholic beverages;
20. Services by way of transportation by rail or a vessel
from one place in India to another of the following goods -
(a) petroleum and
petroleum products falling under Chapter heading 2710 and 2711 of the First Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986);
(b) relief materials
meant for victims of natural or man-made disasters, calamities, accidents or
mishap;
(c) defence or military equipments;
(d) postal mail or
mail bags;
(e) household
effects;
(f) newspaper or
magazines registered with the Registrar of Newspapers;
(g) railway
equipments or materials;
(h) agricultural
produce;
(i) foodstuff
including flours, tea, coffee, jaggery, sugar, milk products, salt and edible
oil, excluding alcoholic beverages; or
(j) chemical
fertilizer and oilcakes;
21. Services provided by a goods transport agency by way of
transportation of -
(a) fruits,
vegetables, eggs, milk, food grains or pulses in a goods carriage;
(b) goods where gross
amount charged for the transportation of goods on a consignment transported in
a single goods carriage does not exceed one thousand five hundred rupees; or
(c) goods, where
gross amount charged for transportation of all such goods for a single consignee
in the goods carriage does not exceed rupees seven hundred fifty;
22. Services by way of giving on hire -
(a) to a state
transport undertaking, a motor vehicle meant to carry more than twelve
passengers; or
(b) to a goods
transport agency, a means of transportation of goods;
23. Transport of passengers, with or without accompanied
belongings, by -
(a) air, embarking
from or terminating in an airport located in the state of Arunachal Pradesh,
Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra
located in West Bengal;
(b) a contract
carriage for the transportation of passengers, excluding tourism, conducted
tour, charter or hire; or
(c) ropeway, cable
car or aerial tramway;
24. Services by way of vehicle parking to general public
excluding leasing of space to an entity for providing such parking facility;
25. Services provided to Government, a local authority or a
governmental authority by way of -
(a) carrying out any
activity in relation to any function ordinarily entrusted to a municipality in
relation to water supply, public health, sanitation conservancy, solid waste
management or slum improvement and upgradation; or
(b) repair or
maintenance of a vessel or an aircraft;
26. Services of general insurance business provided under
following schemes -
(a) Hut Insurance
Scheme;
(b) Cattle
Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated
Rural Development Programme);
(c) Scheme for
Insurance of Tribals;
(d) Janata
Personal Accident Policy and Gramin Accident Policy;
(e) Group Personal
Accident Policy for Self-Employed Women;
(f) Agricultural
Pumpset and Failed Well Insurance;
(g) premia
collected on export credit insurance;
(h) Weather Based
Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme,
approved by the Government of India and implemented by the Ministry of
Agriculture;
(i) Jan Arogya
Bima Policy;
(j) National
Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);
(k) Pilot Scheme
on Seed Crop Insurance;
(l) Central
Sector Scheme on Cattle Insurance;
(m) Universal Health
Insurance Scheme;
(n) Rashtriya
Swasthya Bima Yojana; or
(o) Coconut Palm
Insurance Scheme;
27. Services provided by an incubatee up to a total turnover
of fifty lakh rupees in a financial year subject to the following conditions,
namely:-
(a) the total
turnover had not exceeded fifty lakh rupees during the preceding financial
year; and
(b) a period of three
years has not been elapsed from the date
of entering into an agreement as an
incubatee;
28. Service by an unincorporated body or a non- profit
entity registered under any law for the time being in force, to its own members
by way of reimbursement of charges or share of contribution -
(a) as a trade union;
(b) for the provision
of carrying out any activity which is exempt from the levy of service tax; or
(c) up to an amount
of five thousand rupees per month per member for sourcing of goods or services
from a third person for the common use of its members in a housing society or a
residential complex;
29. Services by the following persons in respective
capacities -
(a) sub-broker or an
authorised person to a stock broker;
(b) authorised person
to a member of a commodity exchange;
(c) mutual fund
agent to a mutual fund or asset management company;
(d) distributor to a
mutual fund or asset management company;
(e) selling or
marketing agent of lottery tickets to a distributer or a selling agent;
(f) selling agent
or a distributer of SIM cards or recharge coupon vouchers;
(g) business
facilitator or a business correspondent to a banking company or an insurance
company, in a rural area; or
(h) sub-contractor
providing services by way of works contract to another contractor
providing works contract services which
are exempt;
30. Carrying out an intermediate production process as job
work in relation to -
(a) agriculture,
printing or textile processing;
(b) cut and polished
diamonds and gemstones; or plain and studded jewellery of gold and other
precious metals, falling under Chapter 71 of the Central Excise Tariff Act
,1985 (5 of 1986);
(c) any goods on
which appropriate duty is payable by the principal manufacturer; or
(d) processes of
electroplating, zinc plating, anodizing, heat treatment, powder coating,
painting including spray painting or auto black, during the course of
manufacture of parts of cycles or sewing machines upto an aggregate
value of taxable service of the specified processes of one hundred and fifty lakh rupees in a
financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the
preceding financial year;
31. Services by an organiser to any person in respect of a
business exhibition held outside India;
32. Services by way of making telephone calls from -
(a) departmentally
run public telephone;
(b) guaranteed public
telephone operating only for local calls; or
(c) free telephone
at airport and hospital where no bills are being issued;
33. Services by way of slaughtering of bovine animals;
34. Services received from a
provider of service located in a
non- taxable territory by -
(a) Government, a
local authority, a governmental authority or an individual in relation to any purpose other than commerce,
industry or any other business or profession;
(b) an entity
registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the
purposes of providing charitable activities; or
(c) a person located
in a non-taxable territory;
35. Services of public libraries by way of lending of books,
publications or any other knowledge- enhancing content or material;
36. Services by
Employees’ State Insurance Corporation
to persons governed under the
Employees’ Insurance Act, 1948 (34 of 1948);
37. Services by way
of transfer of a going concern, as a whole or an independent part thereof;
38. Services by way
of public conveniences such as provision of facilities of bathroom, washrooms,
lavatories, urinal or toilets;
39. Services by a
governmental authority by way of any activity in relation to any function
entrusted to a municipality under article 243 W of the Constitution.
2. Definitions. -
For the purpose of this notification, unless the context otherwise requires, –
(a) “Advocate” has the meaning assigned to it in clause (a)
of sub-section (1) of section 2 of the Advocates Act, 1961 ( 25 of 1961);
(b) “appropriate duty” means duty payable on manufacture or
production under a Central Act or a State Act, but shall not include ‘Nil’ rate
of duty or duty wholly exempt;
(c) “arbitral
tribunal” has the meaning assigned to it in clause (d) of section 2 of the
Arbitration and Conciliation Act, 1996 (26 of 1996);
(d) “authorised
medical practitioner” means a medical practitioner registered with any of the
councils of the recognised system of medicines established or recognized
by law in India and includes a medical professional having the requisite
qualification to practice in any recognised system of medicines in India as per
any law for the time being in force;
(e) "authorised
person” means any person who is appointed as such either by a stock broker
(including trading member) or by a member of a commodity exchange and who
provides access to trading platform of a stock exchange or a commodity exchange
as an agent of such stock broker or member of a commodity exchange;
(f) “auxiliary educational services” means any services
relating to imparting any skill, knowledge, education or development of course
content or any other knowledge – enhancement activity, whether for the students
or the faculty, or any other services which educational institutions ordinarily
carry out themselves but may obtain as outsourced services from any other
person, including services relating to admission to such institution, conduct
of examination, catering for the students under any mid-day meals scheme
sponsored by Government, or transportation of students, faculty or staff of
such institution;
(g) “banking company” has the meaning assigned to it in
clause (a) of section 45A of the Reserve Bank of India Act,1934(2 of 1934);
(h) “brand ambassador” means a person engaged for promotion
or marketing of a brand of goods, service, property or actionable claim, event
or endorsement of name, including a trade name, logo or house mark of any
person;
(i) “business facilitator or business correspondent” means
an intermediary appointed under the business facilitator model or the business
correspondent model by a banking company or an insurance company under the
guidelines issued by Reserve Bank of India;
(j) "clinical establishment" means a hospital,
nursing home, clinic, sanatorium or any other institution by, whatever name
called, that offers services or facilities requiring diagnosis or treatment or
care for illness, injury, deformity, abnormality or pregnancy in any recognised
system of medicines in India, or a place established as an independent entity
or a part of an establishment to carry out diagnostic or investigative services
of diseases;
(k) “charitable activities” means activities relating to -
(i) public
health by way of -
(a) care or
counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii)
persons afflicted with HIV or AIDS, or (iii) persons addicted to a
dependence-forming substance such as narcotics drugs or alcohol; or
(b) public awareness
of preventive health, family planning or
prevention of HIV infection;
(ii)
advancement of religion or spirituality;
(iii)
advancement of educational programmes or skill development relating to,-
(a) abandoned,
orphaned or homeless children;
(b) physically or
mentally abused and traumatized persons;
(c) prisoners; or
(d) persons over
the age of 65 years residing in a rural area;
(iv)
preservation of environment including watershed, forests and wildlife; or
(v) advancement of any other object of general public
utility up to a value of,-
(a) eighteen lakh and
seventy five thousand rupees for the year 2012-13 subject to the condition that
total value of such activities had not exceeded twenty five lakhs rupees during
2011-12;
(b) twenty five lakh
rupees in any other financial year subject to the condition that total value of
such activities had not exceeded twenty five lakhs rupees during the preceding
financial year;
(l) “commodity exchange” means an association as defined in
section 2 (j) and recognized under section 6 of the Forward Contracts
(Regulation) Act,1952 (74 of 1952);
(m) “contract carriage” has the meaning assigned to it in
clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(n)“declared tariff” includes charges for all amenities
provided in the unit of accommodation (given on rent for stay) like furniture,
air-conditioner, refrigerators or any other amenities, but without excluding
any discount offered on the published charges for such unit;
(o) “distributor or selling agent” has the meaning assigned
to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010
notified by the Government of India in the Ministry of Home Affairs, published
in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i),
vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include
distributor or selling agent authorised by the lottery- organising State;
(p) "general insurance business" has the meaning
assigned to it in clause (g) of section 3 of General Insurance Business
(Nationalisation) Act, 1972 (57 of 1972);
(q)“general public” means the body of people at large
sufficiently defined by some common quality of public or impersonal nature;
(r)“goods carriage” has the meaning assigned to it in clause
(14) of section 2 of the Motor Vehicles
Act, 1988 (59 of 1988);
(s) “governmental authority’’ means a board, or an authority
or any other body established with 90% or more participation by way of equity
or control by Government and set up by an Act of the Parliament or a State
Legislature to carry out any function entrusted to a municipality under article
243W of the Constitution;
(t) “health care services” means any service by way of diagnosis or treatment or care for illness,
injury, deformity, abnormality or pregnancy in any recognised system of
medicines in India and includes services by way of transportation of the
patient to and from a clinical establishment, but does not include hair
transplant or cosmetic or plastic surgery, except when undertaken to restore or
to reconstruct anatomy or functions of body affected due to congenital defects,
developmental abnormalities, injury or trauma;
(u) “incubatee” means an entrepreneur located within the
premises of a Technology Business Incubator (TBI) or Science and Technology
Entrepreneurship Park (STEP) recognised by the National Science and Technology
Entrepreneurship Development Board (NSTEDB) of the Department of Science and
Technology, Government of India and who has entered into an agreement with the
TBI or the STEP to enable himself to develop and produce hi-tech and innovative
products;
(v)“insurance company” means
a company carrying on life insurance business or general insurance
business;
(w)“legal service”
means any service provided in relation to advice, consultancy or
assistance in any branch of law, in any manner and includes representational
services before any court, tribunal or authority;
(x)“life insurance business” has the meaning assigned to it
in clause (11) of section 2 of the Insurance
Act, 1938 (4 of 1938);
(y) “original works” means
has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value)
Rules, 2006;
(z) “principal manufacturer” means any person who gets goods
manufactured or processed on his account
from another person;
(za) “recognized sports body” means - (i) the Indian Olympic
Association, (ii) Sports Authority of India, (iii) a national sports federation
recognised by the Ministry of Sports and Youth Affairs of the Central
Government, and its affiliate federations, (iv) national sports promotion
organisations recognised by the Ministry of Sports and Youth Affairs of the
Central Government, (v) the International Olympic Association or a
federation recognised by the
International Olympic Association or (vi) a federation or a body which
regulates a sport at international level and its affiliated federations or
bodies regulating a sport in India;
(zb) “religious place” means a place which is primarily
meant for conduct of prayers or worship pertaining to a religion, meditation,
or spirituality;
(zc) “residential complex” means any complex comprising of a
building or buildings, having more than one single residential unit;
(zd)“rural area” means the area comprised in a village as
defined in land revenue records, excluding-
the area under any municipal committee, municipal
corporation, town area committee, cantonment board or notified area committee;
or
any area that may be notified as an urban area by the
Central Government or a State Government;
(ze)“single residential unit” means a self-contained residential unit which is
designed for use, wholly or principally, for residential purposes for one
family;
(zf) "specified international organization" means
an international organization declared by the Central Government in pursuance
of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of
1947), to which the provisions of the Schedule to the said Act apply;
(zg)"state transport undertaking" has the meaning
assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59
of 1988);
(zh)"sub-broker" has the meaning assigned to it in
sub-clause (gc) of clause 2 of the Securities and Exchange Board of India
(Stock Brokers and Sub-brokers) Regulations, 1992;
(zi) “trade union” has the meaning assigned to it in clause
(h) of section 2 of the Trade Unions Act,1926(16 of 1926).
3. This notification shall come into force on the 1st day of
July, 2012.
[F. No.334/1/2012
-TRU]
(Rajkumar Digvijay)
Under Secretary to the Government of India
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