Service tax exemptions

This query is : Resolved

Report Abuse Follow Query Ask a Query

abhishek jain

abhishek jain (Querist)
Follow

23 May 2008 On which Services service tax is exempted?

R.V.RAO

R.V.RAO (Expert)
Follow

23 May 2008 Exemptions from service tax:
(1)The threshold level of service tax exemption for small service providers has been increased from the present level of Rs.8 lakh to Rs.10 lakh P.A with effect from 01.04.2008, provided that the aggregate value of taxable services rendered by such provider of taxable service from one or more premises, does not exceed Rs. 10 lakh in the preceding financial year. , 2007.
(2) Exemption from service tax is being provided to services provided by resident welfare associations to their members, where the monthly contribution does not exceed Rs. 3000/- per month. [refer notification No. 8/2007-Service Tax dated 01.03.2007]
(3) Exemption from service tax is being provided to- (i) all taxable services provided by Technology Business Incubators (TBI) / Science & Technology Entrepreneurship Parks (STEP), recognised by National Science & Technology Entrepreneurship Board of Department of Science & Technology, also known as “incubators”, and [refer notification No. 9/2007-Service Tax dated 01.03.2007](ii) taxable services upto Rs. 50 lakh in a financial year provided by incubatee entrepreneur who is located within the premises of an incubator where the total business turnover of the incubatee entrepreneur does not exceed Rs. 50 lakh in a financial year / preceding financial year. Exemption is available to an incubatee for a period of three years w.e.f. the date of signing an agreement with the incubator. [refer notification No. 10/2007-Service Tax dated 01.03.2007]These exemptions will come into effect from 1stApril, 2007.
(4) Exemption from service tax is being provided to technical testing and analysis services provided in relation to testing of newly developed drugs including vaccines and herbal remedies on human participants by a clinical research organisation approved to conduct clinical trials by the Drugs Controller General of India. [refer notification No. 11/2007-Service Tax dated 01.03.2007](5) 5.Exemption from service tax is being provided to services provided in relation to delivery of content of cinema in digital form after encryption, electronically. [refer notification No. 12/2007-Service Tax dated 01.03.2007]

SOURCE:indiabudget.nic.in

The Union Government has exempted from service tax taxable services provided by the Reserve Bank of India and taxable services provided to the RBI when the tax is liable to be paid by the RBI under Sec. 68 (2) of the Finance Act read with Rule 2 of the Service Tax Rules, 1994. Also exempt from the tax are taxable services received in India from outside the country by the RBI under Sec. 66A.

There is no service tax on export of services.
Services provided to UN and International Agencies and supplies to SEZ(Special Economic Zones) are exempt from service tax.
Service tax is not payable on value of goods and material supplied while providing services. Such exclusion is permissible only if Cenvat credit on such goods and material is not taken.

FOLLOWING NEW EXEMPTIONS INTRODUCED IN BUDGET 2008.
1. 75% OF GROSS AMOUNT CHARGED BY GOODS TRANSPORT AGENCY SERVICES WITHOUT ANY CONDITIONS.
2.SERVICES PROVIDED IN RELATION TO BOOKING OF HOTEL ACCOMMAODATION IN INDIA BY A PERSON OUTSIDE INDIA TO A CUSTOMER LOCATED OUTSIDE INDIA.
SOURCE:india.gov.in
R.V.RAO