Login | Register Now | Contact Us   
 

CGST Act IGST Act UTGST Act GST (Compensation to the States) Act Addendum to the GST Rate Schedule - 03.06.2017 101st Constitution Amendment Act, 2016 Addendum to the GST Rate Schedule - 18.05.2017 GST Compensation Cess Rates Decided in the GST Council Meeting held on 18.05.2017 Chapter Wise Rate wise GST Schedule - 03.06.2017 Chapter wise GST Rate Schedule for Goods Decided in the GST Council Meeting held on 18.05.2017 Revised Threshold for Composition Scheme - 11.06.2017 IGST Exemptions Approved by the GST Council - 11.06.2017 GST Rates Approved by the GST Council - 11.06.2017 Service Tax Exemptions in GST IGST Exemption, Concession List - 03.06.2017 Composition - Rules Valuation Rules ITC - Rules Invoice, Debit & Credit Notes - Rules Payment - Rules Refund - Rules Registration - Rules Return- Rules Transition Rules Proposed CTD Document Accounts and Record Rules GST rate Schedule for Services Decisions Taken by the GST Council in the 16th Meeting - 11.06.2017 List of Services under Reverse Charge Classification Scheme for Services Under GST
Service Tax Exemptions to the Services Provided by the Government
20 April, 2016 Ahmedabad :
Service Tax Exemptions to the Services Provided by the Government

Any service provided by Government or a local authority to a business entity has been made taxable w.e.f 1st April 2016. Thus, there have been many issues which are raised by trade and industry. Accordingly CBEC has clarified various issues vide Circular No. 192/02/2016-S.T. dated 13.04.2016.

As per the said Circular, services by way of grant of passport, visa, driving license, birth or death certificates have been exempted.

It is also clarified that Taxes, cesses or duties levied are not consideration for any particular service as such and hence not leviable to Service Tax. These taxes, cesses or duties include excise duty, customs duty, Service Tax, State VAT, CST, income tax, wealth tax, stamp duty, taxes on professions, trades, callings or employment, octroi, entertainment tax, luxury tax and property tax.

It is further clarified by the Board that fines and penalty chargeable by Government or a local authority imposed for violation of a statute, bye-laws, rules or regulations are not leviable to Service Tax. Further, fines and liquidated damages payable to Government or a local authority for non-performance of contract entered into with Government or local authority have also been exempted.

Services provided by the Government or a local authority by way of: (i) registration required under the law; (ii) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, required under the law, have been exempted vide Notification No. 22/2016 -ST dated 13.4.2016.

Services provided by Government or a local authority where the gross amount charged for such services does not exceed Rs. 5000/- is exempted but it does not cover services provided by Government Railways, Department of Post or hiring of Aircraft. It also clarified that in case where continuous supply of service is provided by the Government, the exemption shall apply only where the gross amount charged for such service does not exceed Rs. 5000/- in a financial year. It appears that such condition may not be a welcome step.

Services by way of allocation of natural resources to an individual farmer for the purposes of agriculture have been exempted. But, such allocations/auctions to categories of persons other than individual farmers would be leviable to Service Tax. This may leave many questions unanswered and may lead to some future ltigations.

Services in the nature of change of land use, commercial building approval, utility services provided by Government or a local authority are also exempted. Regulation of land-use, construction of buildings and other services listed in the Twelfth Schedule to the Constitution which have been entrusted to Municipalities under Article 243W of the Constitution, when provided by governmental authority are already exempt under Notification No. 25/2012 -ST dated 20.6.2012. The said services when provided by Government or a local authority have also been exempted from Service Tax vide Notification No. 22/2016 -ST dated 13.4.2016. Also, services provided by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution have been exempted from Service Tax.

To remove confusion the Circular also mentioned that Cenvat Credit can be availed on the basis of challan evidencing payment of Service Tax.

Courtesy: From the desk of Monish Bhalla, Founder, www.servicetaxonline.com
Related Contents
  • Exemptions
  •  
     

    www.centralexciseonline.com

     


    www.taxolegal.com


    Page copy protected against web site content infringement by Copyscape


    www.customsindiaonline.com
    Home | Mission | Contact Us | Acknowledgements © 2009 Copyrights, All Rights Reserved. 
    Disclaimer Though all efforts have been made to reproduce the order and other contents correctly, the access and circulation is subject to the condition that EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone due to any mistake/error/omissions. Mr Certify site is constantly updated and any or all of the contents are liable to be modified, altered, deleted or replaced. EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is not responsible/liable for any loss or damage caused to anyone whether directly or indirectly  due to any modification , alteration, addition, deletion or replacement of any of the contents.

    Copyright: Reproduction of news articles, photos, or any other content in whole or in part in any form or medium without express written permission of  EASY SERVICETAXONLINE DOT COM PRIVATE LIMITED is prohibited.Do not copy contents of this site. All pages are protected by COPYSCAPE. Plagiarism will be detected by COPYSCAPE.