[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
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.
[F.
No. 334/1/2012-TRU]
(Samar
Nanda)
Under Secretary to the Government
Under Secretary to the Government
