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Service Tax Abatement Rate Chart from 01.04.2015

Abatement in Service Tax was First Introduced Vide Principal Notification No. 26/2012-Service Tax, dated 20th June 2012 and subsequently been amended vide Notification No. 2/2013 – Service Tax, dated the 1st March, 2013, Notification No. 9/2013 – Service Tax, Dated: May 8, 2013, Notification No. 08/2014 – Service Tax Dated-11th July, 2014 and Notification No. 8/2015-ST, Dated: March 01, 2015.

By Union Budget 2015 and Notification No. 8/2015-ST, Dated: March 01, 2015 following amendment been made to Abatement Provisions wef 01.04.2015-

Changes made in Service Tax Abatement Provisions with effect from 01/04/2015

1.      Transport of goods/ passengers by rail – Hitherto, service tax was payable on 30% of the value of services of rail transport of goods and passengers (with or without accompanied belongings) without any condition. Now, the abatement shall be available subject to the condition that Cenvat credit on inputs, capital goods and input services, used for providing the taxable services has not been taken under CCR, 2004.

 

SVG: Railways charge this to us. Only they know whether they have claimed Cenvat Credit on Inputs. So does not affect us. We just pay at the rate charged ( 12.36% of 30 % of the Invoice ) by the Railways. They have to justify how they charged not us.

2.      Goods Transport Agency- Abatement on “Transportation of goods by Goods Transport Agency” was 75% which has now been reduced to 70%.

 

SVG: We were paying Service-Tax on Road Transport Invoices at 12.36% of 25% of the Invoice. Now we need to pay 12.36% of 30 % of the Transporters’s Invoice.

3.      Services provided in relation to chit- Abatement on “Services provided in relation to chit” has been withdrawn.

SVG: Does not affect us. Applies to Chit-Fund Businesses.

4.      Transport of goods in a vessel– Abatement on “Transportation of goods in a vessel” was 60% which has now been increased to 70%.

 

SVG: This was applicable to Cabotage ( transportation of cargo within the country by ships). We are not in this business and so not applicable to us.

5.      Transport of passengers by Air–  Hitherto, an abatement of 60% was provided on taxable services of transport of passengers by air (with or without accompanied belongings). The said abatement continues for economy class travel and in case of other than economy class the abatement has been reduced to 40%.

 

SVG: This applies to Airlines not to us since we are not in this business.

Service Tax Rate Abatement Chart as Applicable from 01.04.2015 updated with Changes Made Vide Budget 2015 and Notification No. 8/2015-ST, Dated: March 01, 2015.

 

SVG: Normally Service-Tax is payable on 100% of the Taxable Invoice Value. In case of these items Service-Tax is payable on reduced value of the Taxable Invoice Value. The person rendering the service ( and the bill ) is supposed to pay the Service-Tax except for Road Transport where the Recipient of the  Invoice has to pay .

 

Table

Sl.No.

Description of taxable service

Percentage

Conditions

   

Taxable Value

Abatement

 

(1)

(2)

(3)

(4)

(5)

1

Services in relation to financial leasing including hire purchase (Refer Note-1)

10

90

Nil.

2

Transport of goods by rail

30

70

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004

3

Transport of passengers, with or without accompanied belongings by rail

30

70

Same as above

4

Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises (Refer Note-2)

70

30

(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

5

Transport of passengers by air, with or without accompanied belongings in

   

CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

 

(i) economy class

40

60

 

(ii) other than economy class

60

40

6

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.

60

40

Same as above.

7

Services of goods transport agency in relation to transportation of goods.

30

70

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider under the provisions of the CENVAT Credit Rules, 2004.

8

Services provided in relation to chit

Omitted Vide Notification No. 8/2015-ST, Dated: March 01, 2015

9

Renting of motorcab

40

60

(i) CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004;(ii) CENVAT credit on input service of renting of motorcab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner:(a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or(b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value;(iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

9A

Transport of passengers, with or without accompanied belongings, by-a. a contract carriage other than motorcab.b. a radio taxi.

40

60

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

10

Transport of goods in a vessel

 30

70

Same as above.

11

Services by a tour operator in relation to,-(i) a package tour (Refer Note-4)

25

75

(i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.

(ii) a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour (Refer Note-5)

10

90

(i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.(iii) This exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.

(iii) any services other than specified at (i) and (ii) above.

40

60

(i) CENVAT credit on inputs, capital goods and input services other than the input service of a tour operator, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

12.

(Refer Note-3)Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly, except where entire consideration is received after issuance of completion certificate by the competent authority,-

   

(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004;

 

(a) for a residential unit satisfying both the following conditions, namely:–(i) the carpet area of the unit is less than 2000 square feet; and (ii) the amount charged for the unit is less than rupees one crore;

25

75

(ii) The value of land is included in the amount charged from the service receiver.

 

(b) for other than the (a) above.

30

70

 

Note-1 For the purposes of exemption at Serial number 1 –

(i) The amount charged shall be an amount, forming or representing as interest, i.e. the difference between the installments paid towards repayment of the lease amount and the principal amount contained in such installments;

(ii) the exemption shall not apply to an amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administrative fee, which shall be added to the amount calculated in terms of (i) above.

Note-2. For the purposes of exemption at Serial number 4 –

The amount charged shall be the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any drink (whether or not intoxicating) and whether or not supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services supplied to the service provider, if any; and

(ii) the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

Note-3. For the purposes of exemption at Serial number 12 –

The amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services supplied to the service provider, if any; and

(ii) the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

Note-4 “package tour” means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour,

Note-5 “tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours,

Reverse & Partial Reverse Mechanism Chart from 01.04.2015

 

Reverse Mechanism and Partial Reverse Mechanism in Service Tax was First Introduced Vide Principal Notification No. 30/2012-Service Tax Dated- 20th June, 2012  and subsequently been amended vide Corrigendum Notification [F. No.334/1/2012 -TRU], dated 29-6-2012, Notification No. 45/2012-Service Tax, dated 7th August, 2012 , Notification No. 10/2014-Service Tax Dated- 11th July, 2014 and Notification No.7/2015-Service Tax, Dated- 1st March, 2015.

 

SVG: Normally the service provider and invoicer has to pay the Service-Tax. In case of the cases mentioned below,the service receiver has to pay the Service-Tax under the “ Reverse Mechanism”

After Considering all these Notifications We have Compiled The Reverse and Partial Reverse Mechanism Chart as Applicable from 01.04.2015-

Reverse and Partial Reverse Mechanism Chart with effect from 01.04.2015  and The extent of service tax payable thereon by the person who provides the service and any other person liable for paying service tax for the taxable services 

Table

Sl. No.

Description of a service

Percentage of service tax payable by the person providing service

Percentage of service tax payable by any person liable for paying service tax other than the service provider

(1)

(2)

(3)

(4)

1

in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business

Nil

100%

1A

in respect of services provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company (Effective from 01.04.2015)

Nil

100%

1B.

in respect of services provided or agreed to be provided by a mutual fund agent or distributor, to a mutual fund or asset management company (Effective from 01.04.2015)

Nil

100%

1C.

in respect of service provided or agreed to be provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent

Nil

100%

2

in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road to Company, Partnership Firm, Registered Factory, Registered Society, co-operative society, AOP, LLP, Person Registered Under Central Excise Act, 1944 including Excise Dealers

Nil

100%

3

in respect of services provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm

Nil

100%

4

in respect of services provided or agreed to be provided by an arbitral tribunal to any Business entity

Nil

100%

5

in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services to any Business entity

Nil

100%

5A

in respect of services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate

Nil

100%

6

in respect of services provided or agreed to be provided by Government or local authority excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994 to any Business Entity

Nil

100%

7

(a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate

Nil

100%

(b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate (Revised wef 01.10.2014)

50%

50%

8.

in respect of services provided or agreed to be provided by way of supply of manpower for any purpose or security services by individual, HUF, firm or AOP to Body Corporate

Nil

100%

9.

in respect of services provided or agreed to be provided in service portion in execution of works contract by individual, HUF, firm or AOP to Body Corporate

50%

50%

10

in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory

Nil

100%

11.

in respect of any service provided or agreed to be provided by a person involving an aggregator in any manner to any Business Entity(Effective from 01.03.2015)

Nil

100%

Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method adopted by the provider of service.

Explanation-III. Hitherto, support services provided by a Government/Local authority to any  business entity was subject to 100% reverse charge. The scope of reverse charge has now been  extended in case of all services provided by the Government/Local authority to such business  entities. The exclusion from reverse charge on renting of immovable property and some specified services of Sec. 66D of the Act shall continue.

 

  • Apr
  • 24
  • 2015

Updated Negative List of Services under Service Tax from 01.04.2015

Vide Finance Act, 2012 Concept of Negative list of Services been introduced according to which all services except the those specified in Negative list are liable for Service Tax. First Notification  in the regards was Principal Notification No. 25/2012 – Service Tax, dated 20th June, 2012.

Details of Notifications effecting Subsequent Amendment to Negative List of Services are as follows :-

1. Notification No. 6/2015-Service Tax, Dated: March 01, 2015- Changes in Mega Exemption List of Services Vide Budget 2015

2. Notification No.17/2014–Service Tax, dated: 20th August, 2014 Haj and Mansarovar pilgrimage gets Service Tax exemption

3. Notification No.06/2014 –Service Tax- Dated: 11th July, 2014- Budget 2014 – Changes in Mega Exemption List of Services

4. Notification No.04/2014 – Service Tax, dated 17th February, 2014- Exempting Services related to ‘Rice’ and Services provided by cord blood banks

5. Notification No. 02/2014 – Service Tax, Dated30th January, 2014 Change in Definition of governmental authority in Mega Exemption Notification

6. Notification No.01/2014- Service Tax, dated 10th January, 2014 – Regarding Exemption to Services by way of sponsorship of sporting events organised

7. Notification No.14/2013- Service Tax, dated 22nd October, 2013 No Services tax on serving of food in canteen by Factory

8. Notification No.13/2013 – Service Tax, Dated- 10th September, 2013 Service Tax Exemption to National Skill Development Corporation & others related to it

9. Notification No. 49/2012 – Service Tax, Dated- 24th December, 2012 – Govt exempts Janashree and Aam Aadmi Bima Yojana from service tax

10. Notification No. 44/2012-Service Tax, dated  7th August, 2012 Service Tax exemption extended to slaughtering of all animals 

Changes in the Negative List – Sec. 66D of the Act vide Budget 2015 with effect from 01.04.2015

Levy of service tax on any service received by a business entity from Government or local authority

  • Presently, support services provided by Government or local authority to business entities are liable to service tax.
  • It is proposed to extend the levy to all the services provided by Government or local authority to a business entity. Correspondingly to avoid any interpretational issues, the term ‘Government has been defined under Sec. 65B(26A) of the Act to mean departments of Central Government, State Government and Union Territory.

Levy of service tax on processing of alcoholic liquor for human consumption

  • Hitherto, any process amounting to manufacture or production of goods including processing of alcoholic liquor for human consumption was not leviable to service tax.
  • The said definition alongwith entry 30 of Mega Exemption Notification is amended to exclude the processes for production or manufacture of alcoholic liquor for human consumption.
  • With these amendments, such process (including intermediate production process) relating to alcoholic liquor undertaken either by principal or job worker will be taxable.

Levy of service tax on admission to an entertainment event or access to amusement facility

  • Sec. 66D(j) of the Act excluded consideration charged for admission to entertainment event or access to amusement facility from the ambit of service tax. It is proposed to withdraw the said exemption.
  • Accordingly, service tax shall be levied on fee charged for services provided by amusement parks, amusement arcades, water parks and theme parks.
  • Further, fees for admission to an entertainment event of concerts, pageants, musical performances concerts, award functions and sporting events will be liable to service tax. However by way of a specific entry in Mega Exemption notification, exemption has been provided to events where the fee does not exceed Rs. 500 per person. The recognized sporting events where the participants represent any district, state, zone or country shall however continue to be exempted.

Levy of service tax on conducting a chit fund and distribution/selling of lottery

  • Hitherto, the services of betting, gambling or lottery were not leviable to service tax. Considering the ensuing litigations on the taxability of services provided by the foreman of a chit fund, distributor/selling agent of lottery and money changer, a specific explanation has now been proposed to be introduced in Clause (i) of the Negative List to clarify that the terms ‘betting, gambling or lottery’ shall not include such services as specified above. Corresponding change has also been incorporated in the definition of service wherein the above services are now specifically included and hence taxable.

On the basis of Analysis of above mentioned Notifications we have Compiled Updated List of Services Under Negative List as on 01.04.2015 on which no Service tax is payable :-

We have kept the Serial No. in Negative List Compiled below as per Various Notification issued by CBEC from time to time :-

1.

Services provided to the United Nations or a specified international organization;

2.

(i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

(ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above;

2A.

Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation;

2B.

Services provided by operators of the Common Bio-medical Waste Treatment Facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto;

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;

5A.

Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement;

6.

Services provided by-

 

(a) an arbitral tribunal to -(i) any person other than a business entity; or(ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year;

 

(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,-(i) an advocate or partnership firm of advocates providing legal services ;(ii) any person other than a business entity; or

(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or

 

(c) a person represented on an arbitral tribunal to an arbitral tribunal;

7

Omitted

8.

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

9.

Services provided,-

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

(b) to an educational institution, by way of,-(i) transportation of students, faculty and staff;(ii) catering, including any mid-day meals scheme sponsored by the Government;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv) services relating to admission to, or conduct of examination by, such institution;

9A

Any services provided by, _

 

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

 

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

 

(iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

 

(iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c) any other Scheme implemented by the National Skill Development Corporation.

10.

Services provided to a recognised sports body by-

(a) an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;

(b) another recognised sports body;

11.

Services by way of sponsorship of sporting events organised,-

(a) by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, State, zone or Country;

(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 or 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, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

(a) Omitted

(b) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

(c) Omitted

(d) canal, dam or other irrigation works;

(e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal;

(f) Omitted

13.

Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;

(b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

(c) a 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;

(d) a pollution control or effluent treatment plant, except located as a part of a factory; or a structure meant for funeral, burial or cremation of deceased;

14.

Services by way of construction, erection, commissioning, or installation of original works pertaining to,-

(a) railways, including monorail or metro;

(b) a single residential unit otherwise than 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. Services provided by way of temporary transfer or permitting the use or enjoyment of a copyright,-

(a) covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical or artistic works; or

(b) of cinematograph films for exhibition in a cinema hall or cinema theatre;

16.

Services by an artist by way of a performance in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, if the consideration charged for such performance is not more than one lakh rupees:Provided that the exemption shall not apply to service 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 a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees 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;

19A.

Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year.

20.

Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

(a) Omitted

(b) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(c) defence or military equipments;

(d) Omitted

(e) Omitted

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) railway equipments or materials;

(h) agricultural produce;

(i) milk, salt and food grain including flours, pulses and rice;

(j) chemical fertilizer, organic manure and oil cakes;

(k) cotton, ginned or baled.

21. 

Services provided by a goods transport agency, by way of transport in a goods carriage of,-

(a) agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d) milk, salt and food grain including flours, pulses and;

(e) chemical fertilizer, organic manure and oil cakes;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments;

(i) cotton, ginned or baled.

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 from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;

(b) non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or;

(c) ropeway, cable car or aerial tramway;

24.

Omitted

25.

Services provided to Government, a local authority or a governmental authority by way of –

(a) water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation; or;

(b) repair or maintenance of a vessel

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;

26A.

Services of life insurance business provided under following schemes –

(a) Janashree Bima Yojana (JBY); or

(b) Aam Aadmi Bima Yojana (AABY);

(c) life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of fifty thousand rupees.

(d) Varishtha Pension Bima Yojana;

27.

Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-

(a) the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and

(b) a period of three years has not been elapsed from the date of entering into an agreement as an incubatee;

28.

Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –

 

(a) as a trade union;

 

(b) for the provision of carrying out any activity which is exempt from the levy of service tax; 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) sub-broker or an authorised person to a stock broker;

(b) authorised person to a member of a commodity exchange;

(c) Omitted

(d) Omitted

(e) Omitted

(f) selling agent or a distributer of SIM cards or recharge coupon vouchers;

(g) business facilitator or a business correspondent to a banking company or an insurance company, in a rural area; or

(h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;

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 excluding alcoholic liquors for human consumption, 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.

Omitted

33.

Services by way of slaughtering of animals;

34.

Services received from a provider of service located in a non- taxable territory by –

(a) Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;

(b) an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

(c) a person located in a non-taxable territory;

35

Services of public libraries by way of lending of books, publications or any other knowledge- enhancing content or material;

36.

Services by Employees’ State Insurance Corporation to persons governed under the Employees’ Insurance Act, 1948 (34 of 1948);

37.

Services by way of transfer of a going concern, as a whole or an independent part thereof;

38.

Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;

39.

Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution.

40.

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

41.

Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves;

42.

Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India.

Provisions Applicable from Such date as the Central Government may, by notification in the Official Gazette, appoint

43.

Services by operator of Common Effluent Treatment Plant by way of treatment of effluent;

44.

Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables;

45.

Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo;

46.

Service provided by way of exhibition of movie by an exhibitor to the distributor or an association of persons consisting of the exhibitor as one of its members;

47.

Services by way of right to admission to,-

 

(i) exhibition of cinematographic film, circus, dance, or theatrical performance including drama or ballet;

 

(ii) recognised sporting event;

 

(iii) award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event, where the consideration for admission is not more than Rs 500 per person..

 



PROVIDEND FUND AND ESI PAYMENTS

We would like to inform you that PF and ESI payment will be accepted only through online net banking of SBI and 58 Major Banks w.e.f 1st May, 2015. Please refer the attachment for more details.

ESI
Presently, the facility of payment of ESI contribution is through payment gateway of Sate Bank of India or payment over the counter by cheque or DD along with computer generated challan to designated branches of State Bank of India.


Now, facility for payment of ESI contribution is available through net banking of Sate Bank of India (SBI) and 58 major banks w.e.f. 1st April, 2015. The employers will be able to remit contribution either through net banking or over the counter of SBI branches.

From 1st May, 2015 onwards, only electronic payment will be accepted in ESIC through online net banking of SBI and 58 major banks.


Provident Fund
You are aware that from August, 2014 the payment of challans can be made electronically through internet banking. You will happy to note that this new facility has received tremendous response from the employer and more than 40% of the monthly contribution is being received through internet banking.


In order to further reduce your mandatory interface with EPF office/bank and to improve the ease of doing business in India, EPFO is contemplating to make payment of challans mandatory through internet banking mode. It is to inform you that w.e.f. 01-05-2015 i.e. the payment 1st month of next financial year will be received only through internet banking mode.


 

 
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