Exemptions under service tax part 1

EXEMPTIONS UNDER SERVICE TAX(FINANCE ACT 1994)

Presented by : Keshav Garg

(B. Com, CA, CS, ISA (ICAI))

+91 9888 090 008

cakeshavgarg@gmail.com

MEGA EXEMPTION NOTIFICATION NO: 25/2012 DATED 20.06.2012

Different Segments of Mega Notification

1. Services Provided to International Organization.

2. Services Related to Health care Sector

3. Charitable and Religious Services

4. Arbitral Tribunal and Legal Services

5. Services Related to Art & Culture

6. Services Related to Educational Sector.

7. Services Related to Skill & Sports Activity.

Q: What is the notificationnumber and date of megaexemption under service tax ?

a) 25/2012 dated 20.06.2012

b) 26/2012 dated 01.07.2012

c) 33/2012 dated 01.10.2012

d) 25/2012 dated 01.07.2012

SERVICES RELATED TO HEALTHCARE SECTOR

1. (i) Health care services by a clinical establishment, an authorizedmedical practitioner or para-medics.

(ii) Services Provided by way of transportation of a patient in anambulance, other than those specified in (i) above. (Entry No: 2)

2. Services Provided by cord blood banks by way of preservation of stemcells or any other service relation to such preservation. (Entry No: 2A)

3. Services Provided by operators of the Common Bio-medical WasteTreatment Facility to a clinical establishment by way of treatment ordisposal of bio medical waste or the process incidental thereto. (EntryNo: 2B)

4. Services by veterinary clinic in relation to health care of animals orbirds. (Entry No: 3)

Q: Who amongst the following iscovered under para medics?

a) MBBS Doctor

b) A Dentist

c) Nurses

d)None of the above.

SERVICES RELATED TO INTERNATIONAL

ORGANIZATIONS

1. Services Provided TO the United Nations OR a SPECIFIEDInternational Organization. (ENTRY NO. 1)

CHARITABLE OR RELIGIOUS SERVICES

1. Services by an entity registered under section 12AA of Income Tax Act1961 by way of charitable activities. (Entry No: 4)

2. Services by a person by way of:

(a) renting of precincts of a religious place meant for general public;

(b) conduct of any religious ceremony. (Entry No: 5)

3. Services by a specified organization in respect of a religious pilgrimagefacilitated by the Ministry of External Affairs of Government of India,under bilateral agreement. (Entry No: 5A)

Q: Are services provided by apriest to solemnize wedding ofHindu couple is chargeable toservice tax or not?

a) Yes b) No

ARBITRAL TRIBUNAL AND LEGAL SERVICES

1. Services provided by:

(a) an arbitral tribunal to –

(i) any person other than a business entity; or

(ii) a business entity with a turnover UPTO Rs. Ten lakhs inpreceding financial year.

(b)an individual as an advocate or a partnership firm of advocates by wayof legal services to:

(i) an advocate or partnership firm of advocates providing legalservices

(ii) any person other than business entity

(iii) a business entity with a turnover upto Rs. 10 lakhs in preceedingfinancial year.

(c) person represented on an arbitral tribunal to an arbitral tribunal.(Entry No: 6)

Q: Mr. X, a lawyer gave a legalconsultancy worth Rs. 15 lakhs toMr. A, he is liable to pay service taxon which of the following.

a) Rs. 5 lakhs

b) Rs. 15 lakhs

c) Rs. 10 lakhs

d) He is not liable to pay.

SERVICES RELATED TO ART & CULTURE

1. Services by way of training or coaching in recreational activities relating to arts, culture or sports. (ENTRY NO. 8)

SERVICES RELATED TO EDUCATIONAL SECTOR

1. Services provided –

(a) by an educational institution to its students, faculty andstaff;

(b) to an educational institution by way of:

(i) transportation of students, faculty and staff;

(ii) catering, including any mid day meals schemesponsored by the Government;

(iii) security or clearing or house keeping servicesperformed in such educational institution;

(iv) services related to admission to, or conduct ofexamination of such institution.(ENTRY NO. 9)

Q: Black Commandos (P) Ltd.Provides security services to St.Stephens School at an annualfees of Rs. 8 lakhs. The companywants to know whether it isliable to pay service tax, if yes,on how much amount?

SERVICES RELATED TO SKILL AND SPORTS ACTIVITY

1. Any Services provided by :

(i) the National Skill Development Corporation set up by theGovernment of India;

(ii) a Sector Skill Council approved by the National SkillDevelopment Corporation;

(iii) as assessment agency approved by the Sector Skill council orNational Skill Development Corporation;

(iv) a training partner approved by the National DevelopmentCorporation or the sector skill council. (Entry No: 9A)

2. Services provided to a recognised sports body by:

(a) an individual as a player, referee, umpire etc. for participationin sporting event organized by recognized body

(b) another recognised sports body (Entry No: 10)

Q: Mr. Sachin Tendulkar providescoaching to students of M/s ABCCricket Coaching Club forRs. 1 crore. You are his financialconsultant. He request you to helphim, whether he is liable to payservice tax. If yes, at which amount.If No, he wants to know the entrynumber wide which he isexempted from paying service tax.

THANK YOU

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CA. Keshav Garg

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