1. Presentation
on
Service Tax
Organized By By
Indirect Tax Committee of ICAI Dr. Sanjiv Agarwal
@ Ernakulam FCA, FCS,
28th July, 2013 Jaipur
© Dr. Sanjiv Agarwal

2. SESSION – III
Exemptions
&
Abatements
2

3. 3
This Presentation covers –
 General exemptions
 Exempted services under N. No. 25/2012-ST
 Abatements in Service Tax

4. Small Scale Exemption
• The threshold exemption limit of Rs. 10 lakh continues to exist
and it is over and above the exemptions notified in Notification
No. 25/2012-ST dated 20.6.2012.
• W.e.f. 1.4.2012, aggregate value of Rs. 10 lakh would mean the
sum total of value of first consecutive invoices issued during a
financial year, but does not include value charged in invoices
towards such services which are exempt from whole of service
tax. (Refer Notification No. 33/2012-ST dated 20.6.2012)
to be contd….
4

5. • W.e.f.1.07.2012, Notification No. 6/2005 as
amended shall no longer be applicable. There is a
change in scope of aggregate value which shall
mean as follows and subject to following
conditions-
 total of value of taxable services
 value shall be as charged in first consecutive invoices
issued during financial year
 value charged in invoices issued for taxable services
which are exempt from whole of Service Tax shall be
excluded in determining the aggregate value
5

6. Exemption for Exporters/SEZ
 Transportation of export goods by Goods Transport Agency in a
goods carriage received by an exporter for transport of goods.
(Refer Notification No. 31/2012- ST dated 20.6.2012)
 Refund of service tax paid on all input taxable services received
by an exporter of goods and used for export of goods, subject to
certain specified conditions. (Refer Notification No. 39/2012-ST
dated 20.6.2012)
 Refund of service tax paid on the specified services received by
the SEZ Unit / Developer and used for the authorised operations.
In case where the specified services received by the SEZ Unit or
the Developer are used exclusively for the authorised operations,
the person liable to pay service tax has the option not to pay the
service tax ab initio (Refer Notification No. 12/2013-ST dated
01.07.2013 superseding N. No. 40/2012 – ST, dated 20.6.2012)
6

7. Exemption for Exporters/SEZ
 Rebate of Service Tax paid on taxable services received by
exporter of goods and used for export of goods, subject to
conditions (Refer Notification No. 41/2012-ST dated
29.6.2012)
 Exemption to services provided by commission agent
located outside India and engaged by Indian exporter for
promotion of export goods exported upto Service Tax
calculated on 10% of free on board value of export goods
(Refer Notification No. 42/2012-ST dated 29.6.2012)
7

8. Exemption to Import of Technology
 Taxable service involving import of technology, from so
much of service tax, as is equivalent to the extent of
amount of cess payable on the said transfer of technology
under the provisions of section 3 of the Research and
Development Cess Act, 1986.(Refer Notification No.
14/2012-ST dated 17.3.2012)
Exemption for Services to Foreign Diplomatic Mission
 Taxable services provided for the official use of a foreign
diplomatic mission or consular post in India, or for
personal use or for the use of the family members of
diplomatic agents or career consular officers posted
therein. (Refer Notification No. 27/2012-ST dated 20.6.2012)
8

9. Exemption to Services by TBI or STEP
 Taxable services provided by a Technology Business Incubator (TBI) or
a Science and Technology Entrepreneurship Park (STEP) recognized by
the National Science and Technology Entrepreneurship Development
Board (NSTEDB) of the Department of Science and Technology,
Government of India. (Refer Notification No. 32/2012-ST dated
20.6.2012)
Exemption to Renting of an Immovable Property
 Taxable service of renting of an immovable property, from so much of
the service tax leviable thereon, as is in excess of the service tax
calculated on a value which is equivalent to the gross amount charged
for renting of such immovable property less taxes on such property,
namely property tax levied and collected by local bodies. (Refer
Notification No. 29/2012-ST dated 20.6.2012)
9

10. (Vide mega Exemption Notification No. 25/2012-ST
dated 20.6.2012)
 W.e.f. 1.7.2012
 Covers 39 specific exemptions
 Negative List services – not taxable at all ; can be
amended only by Parliament
 Exempted services – taxable but exempt under
notification; can be modified by notification.
10

11. Health care services by a clinical establishment, an authorised
medical practitioner or para-medics
What is health care
• “Health care services” means any service by way of diagnosis or
treatment or care
• For illness, injury, deformity, abnormality or pregnancy in any
organization 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
• 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.
11

12.  All health care services shall not be exempt but
only recognized systems of medicine are covered
under exemption.
 Recognized systems of medicine include
• Allopathy
• Yoga
• Naturopathy
• Ayurveda
• Homeopathy
• Siddha
• Unani
• Any other system of medicine that may be recognized by Central
Government.
12

13. “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 recognized 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.
13

14. • Paramedics are trained health care professionals,
e.g. nursing staff, physiotherapists, technicians,
lab assistants etc.
• The services to be exempt must
• be health care services
• be provided by -
(i) a clinical establishment, or
(ii) an authorised medical practitioner, or
(iii) para-medics
• Earlier exempted under Notification No. 30/2011-
ST dated 25.4.2011 w.e.f. 1.5.2011.
14

15. Services by an entity registered under section 12AA of the Income tax
Act, 1961 by way of charitable activities
“Charitable activities”- Clause (k) means activities relating to –
(a) public health by way of –
• care or counselling 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
• public awareness of preventive health, family planning or
prevention of HIV infection
(b) advancement of religion or spirituality
15

16. (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 lakhs rupees in any FY provided
that total value of such activities had not exceeded twenty
five lakhs rupees during the preceding FY
16

17. Conditions for this exemption -
 services should be provided by an entity registered u/s
12AA of Income Tax Act, 1961, and
 services should be charitable activities (as above)
17

18. Services by a person by way of-
 renting of precincts of a religious place meant for general public
or
 conduct of any religious ceremony
• Renting of precinct of a religious place as well as conduct of any
religious ceremony, both shall be exempt
• Religious place is a place which is primarily meant for conduct of
prayers or worship pertaining to a religion
• ‘Precincts’ means an area within the walls or perceived boundaries
of a particular building or place; an enclosed or clearly defined area
of ground around a cathedral, church, temple etc.
18

19. • Exemption is available only if the place is meant for general
public
• General public means the body of people at large sufficiently
defined by some common quality of public or impersonal
nature
• E.g.- if a marriage is performed in precincts of a church by
renting of that place, it would be exempt but if only a
reception is hosted, it may be taxable
19

20. 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
20

21. Taxability for Arbitral Tribunal
Sole / Panel
to Arbitral Tribunal exempt
to any person (non business entity) exempt
to business entity (turnover upto 10 lakh) exempt
to business entity (turnover > 10 lakh) taxed under reverse charge
Taxability for advocates
Individual / firm
to Individual / firm exempt
to business entity (turnover upto 10 lakh) exempt
to business entity (turnover > 10 lakh) taxed under reverse charge
• Firm includes LLP
• Effectively, no tax to be paid by advocates / arbitral tribunal
• Legal services – advice, consultancy or assistance in any branch of law in any
manner, includes representational services (N. No. 25/2012-ST dated 20.6.2012)
21

22. Services by way of technical testing or analysis of newly developed drugs,
including vaccines and herbal remedies, on human participants by a
clinical research organization approved to conduct clinical trials by the
Drug Controller General of India
Conditions to be satisfied –
(a) service of conduct of technical testing and analysis
(b) service in relation to newly developed drugs/vaccines/herbal remedies
(c) service of testing on human participants
(d) service by clinical research organization approved by Drug Controller
General of India.
22

23. Services by way of training or coaching in recreational activities relating to
arts, culture or sports
• Exemption is to training or coaching
Such coaching or training must relate to any one or more of
—
 arts,
 culture,
 sports
• Activities by performing artists in folk or classical art
forms of music, dance or theatre are not liable to
service tax
23

24. Services provided to or by an educational institution in respect of education
exempted from service tax, by way of -
 auxiliary educational services or
 renting of immovable property
• Auxiliary education services shall cover the services in relation to
educational activities only and include –
i. any service relating to imparting any
 skill
 knowledge
 education
 development of course conduct
 other knowledge enhancement activity
ii. whether for students or faculty
iii. out sourced activities ordinarily carried out by educational institutions
24

25. iii. services in relation to –
 admission
 conduct of examination
 catering of students under any mid day meal scheme
sponsored by Government
 Transportation of students or faculty
iv. Services in relation to catering under mid day scheme and
transportation were hitherto exempt under different notifications
under outdoor catering services and tour operator’s services
25

26. 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) a civil structure or any other original works meant predominantly for use
other than for commerce, industry, or any other business or profession;
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) 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) water supply (ii) water treatment, or (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 Act;
26

27.  Government (States or Central) or any local authority (such as
municipal corporation, development authority etc) or governmental
authority (such as Revenue Board, Water Board etc) shall be exempt
from levy of service tax on
• construction,
• erection,
• commissioning,
• installation,
• completion,
• fitting out,
• repair,
• maintenance,
• renovation, or
• alteration,
in relation to specified structure, buildings or complex.
27

28.  Construction of buildings or structures such as hospitals or educational
institutes for the government or local authority or governmental
authority –Exempt
 if such construction is for others – Taxable
 A civil structure or any other original works meant predominantly for
use other than for commerce, industry, or any other business or
profession – Exempt
 If client is other than the Government, a local authority or a
governmental authority, service tax is required to paid
 Service tax is payable on construction of a residential complex having
more than one single residential unit
28

29. 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
e) a structure meant for funeral, burial or cremation of deceased
29

30. • Construction of roads for use by general public - Exempt
• Construction of roads which are not for general public use e.g.
construction of roads in a factory, residential complex etc –Taxable
• If assessee is constructing such structures for the government, a local
authority or a governmental authority – Exempt
• If assessee is constructing for others – Taxable
• construction of a building owned by an entity registered under section 12
AA of the Income tax Act, 1961 and meant predominantly for religious use
by general public – Exempt
• Repair, maintenance of airports, ports and railways -Taxable
30

31. Services by way of construction, erection, commissioning, or installation
of original works pertaining to,-
a) an airport, port or 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;
31

32. • “Original works” as defined in Valuation Rules 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,
(c) erection, commission or installation of plant, machinery or
equipment or structures, whether prefabricated or otherwise
• No service tax liability on erection or installation of machineries or
equipments for units processing agricultural produce
• Erection or installation of machineries or equipments for dal mills, rice
mills, milk dairies or cotton ginning mills -Exempt
• Only erection and construction of original works is covered
• Exemption will cover low cost houses under the scheme of affordable
housing in partnership
32

33.  Temporary transfer or permitting the use or enjoyment
of a copyright covered under clause (a) or (b) of sub-
section 91) of section 13 of the Indian Copyright Act,
1957, relating to original literary, dramatic , musical,
artistic works or cinematograph films for exhibition in
a cinema hall or cinema theatre
33

34. 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;
• The service provided by any person being a performing artist in the
form of -
• folk, or
• classical
in relation to -
• music,
• dance, or
• theatre
are exempt
• if such an artist provides services as a brand ambassador for any
product, service, event or company etc for a consideration - Taxable
34

35. 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 unit of accommodation below rupees one thousand
per day or equivalent
• “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
• Abatement under Notification No. 26/2012-ST is also available to such
services where declared tariff is Rs. 1000 or more and Service Tax is
payable only on 60 per cent of the gross value of taxable service
35

36. Services provided in relation to serving of food or beverages by
a restaurant, eating joint or a mess, other than those
having
(i) the facility of air-conditioning or central air-heating in
any part of the establishment, at any time during the year,
and
(ii) a licence to serve alcoholic Beverages
36

37. Services by way of transportation by rail or a vessel from one place 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 or mail bags;
e. household effects;
f. newspaper or magazines registered with the Registrar of Newspapers;
g. railway equipments or materials;
h. agricultural produce;
i. foodstuff (includes milk) including flours, tea, coffee, jaggery, sugar,
milk products, salt and edible oil, excluding alcoholic beverages; or
j. chemical fertilizer and oilcakes;
37

38. 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 for the transportation of goods 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;
d) agricultural produce;
e) foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt
and edible oil, excluding alcoholic beverages; or
f) chemical fertilizer and oilcakes;
g) relief materials meant for victims of natural or man-made disasters,
calamities, accidents or mishap;
h) defence or military equipments;
i) newspaper or magazines registered with the Registrar of Newspapers;
38

39. • The exemption is in relation to –
(a) transportation of specified goods only
(b) in a rail or a vessel.
(c) from one place to other by rail or vessel
• Goods specified are of general nature, transportation of which is in
national and public interest
39

40. 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 for the transportation of goods 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;
40

41. 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
Exemption shall be available subject to following conditions –
• hiring to a State transport undertaking or to a goods transport
agency
• hiring of motor vehicle to carry more than 12 passengers or in
case of GTA, for transportation of goods
• In both the cases, vehicle should be given on hire
41

42. Services by way of vehicle parking to general public excluding
leasing of space to an entity for providing such parking
facility
42

43. Services provided to Government, a local authority or a governmental
authority by way of -
a) carrying out any activity in relation to any function ordinarily entrusted
to a municipality in relation to water supply, public health, sanitation
conservancy, solid waste management or slum improvement and
upgradation; or
b) repair or maintenance of a vessel or an aircraft
Services provided to the Government or a local authority or Governmental
Authority may cover services 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;
43

44.  Specified schemes of general insurance business are
exempt ( Insurance of Huts, cattles, tribals, export
credit, crops, seeds crop, coconut palm, specified
health schemes etc.)
 Specified schemes of life insurance business are
exempt (Janashree Bima Yojana , Aam Adami Bima
Yojana)

45. Activities carried out in relation to functions ordinarily
entrusted to municipality in relation to –
 water supply
 public health
 sanction conservation
 solid waste management
 slum improvement / upgradation
45

46. 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
• Services should be provided to own members and not to non-
members.
• Service of an unincorporated body or a non- profit entity registered
under any law for the time being in force to its own members up to an
amount of Rs 5,000 per member per month by way of reimbursement
of charges or share of contribution is exempt from service tax
46

47. 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) mutual fund agent to a mutual fund or asset management company;
d) distributor to a mutual fund or asset management company;
e) selling or marketing agent of lottery tickets to a distributer or a selling
agent;
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;
47

48. Services by an organizer to any person in respect of a business
exhibition held outside India
 Organizer should be in India
 Exhibition should be held outside India
 It should be in relation to business
48

49. 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
• If services are used for industry, business or commercial purpose,
service tax is payable under reverse charge basis
• For other purposes, it will be exempt from service tax
49

50. Services of public libraries by way of lending of books, publications or any
other knowledge- enhancing content or material
Following services of public libraries shall be exempt –
 lending of books
 lending of publications
 lending of other knowledge enhancing content or
material, (i.e. in soft or hard version, digital content,
web content etc)
• ‘Public library’ has not been defined
50

51. Services by way of transfer of a going concern, as a whole or an independent
part thereof
 Going Concern as per AS-1
 Sale of business as a whole
 Related services are taxable
51

52. 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
 All services are not exempt
 Services by a governmental authority by way of any activity in relation
to any function entrusted to a municipality under article 243W of the
Constitution are exempt
52

53. 53
• Over and above full exemption to 39 categories of services vide
Notification No. 25/2012-ST dated 20.06.2012
• Earlier there were a number of exemption notifications that
prescribed the abatements for various categories of services
(including 1/2006)
• Abatements merged into a single Notification No 26/2012 - ST
dated 20/6/12
• Valuation rules contain abatement for Works Contract and
Supply of Food Services

54. Sl. No. Description of taxable service Taxable
value(%)
Conditions
1 Financial leasing services including
equipment leasing and hire purchase
10 Nil
2 Transport of goods by rail (exempted upto
30.9.2012)
30 Nil
3 Transport of passengers, with or without
accompanied belongings by rail ( exempted
upto 30.9.2012)
30 Nil
4 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 place
specially arranged for organizing a function
70 CENVAT credit on any
goods classifiable under
chapter 1 to 22 of the
Central Excise Tariff Act,
1985 has not been taken
under the provisions of the
CENVAT Credit Rules, 2004.54

55. 55
Sl.
No
Description of taxable service Taxable
value(%)
Conditions
5 Transport of passengers by air, with or
without accompanied belongings
40 CENVAT credit on inputs or capital goods,
used for providing the taxable service, has
not been taken under the provisions of the
CENVAT Credit Rules, 2004.
6 Renting of hotels, inns, guest houses,
clubs, campsites or other commercial
places meant for residential or lodging
purposes
60 Same as above.
7 Transport of goods by road by Goods
Transport Agency
25 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.
8 Services provided in relation to chit [
quashed by Delhi High Court in Delhi
Chit Fund case (2013) 39 STT 955 ]
70 Same as above.

56. 56
Sl.
No
Description of taxable service Taxable
value(%)
Conditions
9 Renting of any motor vehicle
designed to carry passengers
40 Same as above.
10 Transport of goods in a vessel from
one port to another
50 Same as above.
11 Tour operator services
(i) provided by a tour operator in relation
to a package tour
25 (i) 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.
(ii) The bill issued for this purpose
indicates that it is inclusive of charges
for such a tour.

57. Sl. No Description of taxable
service
Taxable
value(%)
Conditions
(ii) provided by a tour operator in
relation to a tour, solely arranging
or booking accommodation
10 (i) 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.
(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.
57

58. Sl. No Description of taxable service Taxable
value(%)
Conditions
(iii) Services, other than
services specified above in (i)
or (ii)
40 (i) 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.
(ii) The bill issued indicates that the
amount charged in the bill is the gross
amount charged for such a tour.
58

59. Sl. No Description of taxable service Taxable
value(%)
Conditions
12. 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) For residential unit having
carpet area upto 2000 sq.
ft. or ( and w.e.f. 8.05.2013)
where the amount charged
is less than rupees one
crore;
(ii) For other than the (i)
above
25 (upto
28.02.2013)
25 ( w.e.f.
1.03.2013)
30 ( w.e.f.
1.03.2013)
(i) CENVAT credit on inputs
used for providing the taxable
service has not been taken
under the provisions of the
CENVAT Credit Rules, 2004.
(ii) The value of land is
included in the amount
charged from the
service recipient.
59

60. 60
Draft Circular F. No.354 /146/2012 – TRU dated 27.09.2012 (Air Travel)
Charges which are directly related to journey such as re-confirmation fee, date
change fee, seat upgrade fee, preferred seat charges etc. will be covered by
abatement
Charges which are not related to journey such as meal charges, escort charges etc.
will not be covered by abatement.
Excess baggage charge may be leviable to service tax without abatement
Pet charges may be leviable to service tax without abatement
For cancellation charges billed separately as administrative charge, abatement
will not be applicable