posted Jun 14, 2012, 6:05 AM by Law Kerala
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updated Jun 14, 2012, 6:07 AM
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[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.12/2012-Service
Tax
New Delhi, the 17th March 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 Finance Act), 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 66 B of the said Finance 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 to any person
other than a business entity by -
(a) an individual as an advocate; or
(b) a person represented on and as
arbitral tribunals;
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-
(a) to an educational institution by
way of catering under any centrally assisted mid – day meals scheme sponsored
by Government;
(b) to or by an institution in
relation to educational services, where the educational services are exempt
from the levy of service tax, by way of transportation of students or staff;
(c) to or by an institution in
relation to educational services, where the educational services are exempt
from the levy of service tax, by way of services in relation to admission to
such education;
10. Services provided to a recognised
sports body by-
(a) an individual as a player,
referee, umpire, coach or manager for participation in a tournament or
championship organized by a recognized sports body;
(b) another recognised sports body;
11. Services by way of sponsorship of
tournaments or championships 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, 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 or local authority by way of erection, construction, maintenance,
repair, alteration, renovation or restoration of -
(a) a civil structure or any other
original works meant predominantly for a non-industrial or non-commercial use;
(b) a historical monument,
archaeological site or remains of national importance, archaeological
excavation, or antiquity specified under 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)
drinking water supply (ii) water treatment (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 Finance
Act;
13. Services provided by way of
erection, construction, maintenance, repair, alteration, renovation or
restoration of,-
(a) road, bridge, tunnel, or terminal
for road transportation for use by general public;
(b) 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;
(c) pollution control or effluent
treatment plant, except located as a part of a factory; or
(d) electric crematorium;
14. Services by way of erection or
construction of original works pertaining to,-
(a) airport, port or railways;
(b) single residential unit otherwise
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 clause (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 room 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 the facility of air-conditioning or central air-heating in
any part of the establishment, at any time during the year, and which has a
licence to serve alcoholic beverages;
20. Services by way of transportation
by rail or a vessel from one port 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, mail bags or
household effects;
(e) newspaper or magazines registered
with Registrar of Newspapers;
(f) railway equipments or materials;
(g) agricultural produce;
(h) foodstuff including flours, tea,
coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic
beverages; or
(i) 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
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 or terminating in
an airport located in the state of Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Baghdogra located in
West Bengal; or
(b) a contract carriage for the
transportation of passengers, excluding tourism, conducted tour, charter or
hire;
24. Services by way of motor vehicle
parking to general public excluding leasing of space to an entity for providing
such parking facility;
25. Services provided to the
Government or a local authority by way of -
(a) repair of a ship, boat or vessel;
(b) effluents and sewerage treatment;
(c) waste collection or disposal;
(d) storage, treatment or testing of
water for drinking purposes; or
(e) transport of water by pipeline or
conduit for drinking purposes;
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 business turnover of fifty lakh rupees in a financial year
subject to the following conditions, namely:-
(a) the total business turnover had
not exceeded fifty lakh rupees during the preceding financial year; and
(b) a period of three years has not
lapsed from the date of entering into an agreement as an incubatee;
28. Service by an unincorporated body
or an entity registered as a society to own members by way of reimbursement of
charges or share of contribution -
(a) as a trade union;
(b) for the provision of exempt
services by the entity to third persons; 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) a sub-broker or an authorised
person to a stock broker;
(b) an authorised person to a member of
a commodity exchange;
(c) a mutual fund agent or distributor
to mutual fund or asset management company for distribution or marketing of
mutual fund;
(d) a selling or marketing agent of
lottery tickets to a distributer or a selling agent;
(e) a selling agent or a distributer
of SIM cards or recharge coupon vouchers; or
(f) a business facilitator or a
business correspondent to a banking company or an insurance company in a rural
area;
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
telephones;
(b) guaranteed public telephones
operating only for local calls; or
(c) free telephone at airport and
hospitals where no bills are being issued;
33. Services by way of slaughtering of
bovine animals;
34. Services received from a service
provider located in a non- taxable territory by -
(a) the Government, a local authority
or an individual in relation to any purpose other than industry, business or
commerce; or
(b) an entity registered under section
12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing
charitable activities.
2. Definitions. - for the purpose of
this notification, unless the context otherwise requires, –
1. “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),
2. “appropriate duty” means duty
payable on manufacture or production under a Central or a State Act, but shall
not include ‘Nil’ rate of duty or duty wholly exempt,
3. “arbitral tribunal” has the meaning
assigned to it in clause (d) of section 2 of the Arbitration and Conciliation
Act, 1996 (26 of 1996),
4. “authorised medical practitioner”
means any medical practitioner registered with any of the Councils of the
recognised system of medicine and includes medical professional having the requisite
qualification to practice in any recognised system of medicine as per any law
for the time being in force,
5. "authorised person” means and
includes any person whether being an individual, partnership firm, limited
liability partnership or body corporate, who is appointed as such either by a
stock broker including trading member or by a member of commodity exchange and
who provides access to trading platform of a stock exchange or a commodity
exchange, as an agent of the stock broker or member of a commodity exchange,
6. “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),
7. “business facilitator or business
correspondent” means an intermediary appointed under business facilitator model
or business correspondent model by a banking company or an insurance company
under the guidelines issued by Reserve Bank of India,
8. "clinical establishment"
means a hospital, nursing home, clinic, sanatorium or an 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 medicine, established and administered or maintained
by any person or a place established as an independent entity or a part of an
establishment to carry out diagnostic or investigative services of diseases,
9. “charitable activities” means
activities relating to -
(a) public health by way of -
(I) 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
(II) public awareness of preventive
health, family planning or prevention of HIV infection;
(b) advancement of religion;
(c) advancement of educational
programmes or skill development relating to,-
(I) abandoned, orphaned or homeless
children;
(II) physically or mentally abused and
traumatized persons;
(III) prisoners; or
(IV) persons over the age of 65 years
residing in a rural area;
(d) preservation of environment
including watershed, forests and wildlife; or
(e) advancement of any other object of
general public utility up to a value of twenty five lakh rupees in a financial
year subject to the condition that total value of such activities had not
exceeded twenty five lakhs rupees during the preceding financial year.
Explanation: - For the purpose of this
clause, ‘general public’ means the body of people at large sufficiently defined
by some common quality of public or impersonal nature.
10. “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),
11. “contract carriage” has the
meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act,
1988 (59 of 1988),
12. “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 does
not include any discount offered on the published charges for such unit,
13. “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,
14. "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),
15. “goods carriage” has the meaning
assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59
of 1988),
16.“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 medicine and
includes services by way of supply of meals for the patient or 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,
17.“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,
18.“insurance company” means a company
carrying on life insurance business or general insurance business,
19.“life insurance business” has the
meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938
(4 of 1938),
20. “original works” means -
(a) all new constructions; or
(b) all types of additions and
alterations to abandoned or damaged structures on land that are required to
make them workable,
21. “principal manufacturer” means any
person who gets goods manufactured or processed on his account from another
person,
22. “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,
23. “religious place” means a place
which is primarily meant for conduct of prayers or worship pertaining to a
religion,
24. “residential complex” means any
complex comprising of a building or buildings, having more than one single
residential unit,
25.“rural area” means the area
comprised in a village as defined in land revenue records, excluding,-
(i) the area under any municipal
committee, municipal corporation, town area committee, cantonment board or
notified area committee; or
(ii) any area that may be notified as
an urban area by the Central Government or a State Government,
26. “single residential unit” means an
independent residential unit with specific facilities for living, cooking and
sanitary requirements,
27. "specified international
organisation" means an international organisation 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,
28. "state transport
undertaking" has the meaning assigned to it in clause (42) of Section 2 of
the Motor Vehicles Act, 1988 (59 of 1988),
29. "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) (Second Amendment)
Regulations, 2006,
30.“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 from the date on which section 66B of the Finance Act, 1994 comes into
effect.