What are Exempted Services in the interest of public

What are Exempted Services in the interest of public

Negative List and Exempted Services

 ·       All Service by Government or local authority excluding following service to the extent they are not covered anywhere else

o   Services by Department of Post by way of Speed post, Express parcel post, Life Insurance agency services provided to a person other than government

o   Services in relation to an aircraft or a vessel, inside or outside the precincts of a port or aircraft

o   Transport of goods or passengers

o   Any other services other than above services provided to business entities

·       Services by Reserve Bank of India

·       Services by Foreign Diplomatic Mission Located in India

·       Services related to Agriculture

·       Trading of Goods

·       Selling of space for advertisement in Print Media

·       Service by way of access to a road or a bridge on payment of toll charges

·       Betting, Gambling and Lottery

·       Transmission or distribution of electricity by an electricity transmission or distribution utility

·       Service by way of renting of Residential dwelling for use as residence

·       Services by way of Loans & Advances

·       Transportation of Passengers, with or without accompanied belongings

o   Railway in a class other than

§  First Class or

§  Air conditioned coach

o   Metro, monorail, or tramway

o   Inland waterways

o   Public transport other than predominantly for tourism purpose in a vessel between places located in India

o   Metered cabs or auto rickshaws

·       Transportation of goods

o   Road except the services of

§  A goods transport agency or

§  A courier agency

o   Inland waterways

·       Funeral, burial, crematorium or mortuary services including transportation of deceased.

 What are Exempted Services?

Central Government specifically exempted the following taxable service in the interest of public by issuing notification in official gazette. some of the services are

·         Services provided to united nation or specified international organisation

·         Health care services by a clinical establishment or an authorised Medical Practitioner/Para-medics

·         Services by way of transportation of a patient in an ambulance

·         Services provided by cord blood banks

·         Services provided by operators of common Bio-Medical waste Treatment facility to a clinical establishment for treatment or disposal of bio-medical waste

·         Service by a veterinary clinic

·         Services by an entity registered under section 12AA of income tax by way of charitable activities

·         Services by person by way of conducting religious ceremony

·         Services provided by an arbitral tribunal to

o    Any person other than a business entity

o    A business entity with a turnover up to rupees ten lakh in preceding FY

·         Services provided by a partnership firm of advocates or individual as an advocate other than senior advocate by way of legal service to

o    An advocate or partnership of firms of advocates providing legal services

o    Any person other than a business entity

o    A business entity with a turnover up to rupees ten lakh in preceding FY

·         Services by way of training or coaching in recreational activities relating to arts, culture or sports

·         Services provided to an educational institution by way of

o    Transportation of students, faculty and staff

o    Catering, Mid day meals

o    Security, housekeeping or cleaning services

o    Conduct of examination

·         Any services provided by

o    National skill development corporation

o    Sector skill council approved by National skill development corporation

o    An assessment agency approved by Sector skill council

·         Service provided by training providers under Deen dayal Upadhyaya Grameen Kaushalya Yojana

·         Services of public libraries by way of lending books

·         Services of Employee State Insurance Corporation to person governed under employee’s insurance act, 1948.

·         Services by way of transfer going concern as a whole or independent part thereof

·         Services by way of public conveniences such as facilities of bathrooms, washroom etc.,

·         Services by way of unloading, loading, packing, storage or warehousing of rice, cotton, ginned or baled

·         Services received by the Reserve Bank of India from outside India in relation to management of foreign exchange reserve

·         Service provided by a tour operator to a foreign tourist to a tour conducted wholly outside India

·         Services by way of admission to a museum, national park, wild life sanctuary, tiger reserve or zoo.


Who has to file Service Tax Return? When? What is the Late Fee?

Every assessee who has registered for service tax and been assigned a service tax registration number is required to file a service tax return on half yearly basis irrespective of whether the assessee has provided taxable services in a period or not he is required to file his service tax return on a half yearly basis before the due dates as mentioned below

·         April  – Sept       -              25th Oct

·         Oct – Mar           -              25th April

Service Tax Return is required to filed in Form ST-3 or ST-3A as the case may be and include following details

·         The value of taxable services billed

·         The value of taxable service realised

·         Amount of service tax payable

In case of any error or omission in the return assessee can file revised return within 90 days from date of submission of original return. However if return is not filed within due date then he shall liable to pay following fee

·         First 15 Days                      -              Rs 500

·         15 – 30 days                       -              Rs 1000

·         More than 30 days         -              Rs 1000 + 100 per day beyond 30 days

Maximum of Rs 20,000.


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