EXEMPTION FROM SERVICE TAX

Section 93. Power to grant exemption from service tax.

(1)     If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon.

(2)     If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt any taxable service of any specified description from the payment of whole or any part of the service tax leviable thereon, under circumstances of exceptional nature to be stated in such order.

1. GENERAL EXEMPTIONS WHICH ARE APPLICABLE FOR ALL SERVICES

Notification No.	Exemption	Remarks/ Conditions
Notification No. 16/2002 ST, dated 02.08.2002	All the taxable services provided by any person to the United Nations or an International Organisation, are exempt from levy of service tax.	International Organisation means an Organisation declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 to which the provisions of the   said Act apply.
Notification No. 22/2006 ST dated 31.05.2006	All taxable services to any person, by Reserve Bank of India are exempt from levy of service tax.
Notification No. 22/2006 ST dated 31.05.2006	Taxable services provided or to be provided by any person, to Reserve Bank of India when the service tax for such services is to be paid by Reserve Bank of India under section 68(2) read with rule 2 of the Service Tax Rules, 1994 are exempt from levy of service tax.
Notification No. 22/2006 ST dated 31.05.2006	Taxable services received in India from outside India by Reserve Bank of India under section 66A of the Finance Act, 1994 are exempt from levy of service tax.
Notification No. 9/2007 ST dated01.03.2007	All taxable services provided or to be provided by Technology Business Incubators (TBI)/Science and Technology Entrepreneurship Parks (STEP) are exempt from levy of service tax.	Conditions 1.      STEP or TBI shall be recognized by National Science and Technology Entrepreneurship Board (NSTEBD) of the Department of Science & Technology. 2.      STEP or TBI, shall furnish the requisite information containing the details of the incubator along with the information received from each incubatee to the concerned Assistant/Deputy Commissioner of Central Excise before availing the exemption; and 3.      STEP or TBI shall thereafter furnish the information in the formats mentioned above in the same manner before the 30th day of June of each financial year.
Notification No. 10/2007 ST dated 01.03.2007	All taxable services provided or to be provided by an (incubatee) entrepreneur located within the premises of TBI/ STEP have been exempted from the levy of the service tax.	Conditions (a)    STEP or TBI shall be recognized by National Science and Technology Entrepreneurship Board (NSTEBD) of the Department of Science & Technology. (b)   The entrepreneur enters into an agreement with the TBI or the STEP as an incubatee, to enable himself to develop and produce hi-tech and innovative products; and (c)    The total business turnover of such entrepreneur does not exceed Rs.50 lakh during the previous financial year. Further, the exemption contained in this notification shall apply for a period of 3 years from the date on which such entrepreneur enters into an agreement with TBI or STEP.
Notification No. 12/2007 ST dated 01.03.2007	Taxable services provided under an agreement, by any person to other person who has the right to authorise any person to exhibit cinematograph film are exempt from levy of service tax.	Conditions 1.      Service provided is in relation to the delivery of the content of the cinematograph film; and 2.      Content of such film, being in digitized form, after its encryption, is transmitted directly to a cinema theatre for exhibition through the use of satellite, microwave or terrestrial communication line and not by any physical means including CD and DVD.
Notification No. 33/2007 ST dated 23.05.2007	All taxable services provided by any person, for the official uses of a foreign diplomatic mission or consular post in India are exempt from levy of service tax.	Procedure for availing the exemption is specified in the notification.
Circular No. 96/7/2007 ST dated 23.08.2007	Service tax shall not be leviable on fee collected by public authorities while performing statutory functions/duties under the provisions of a law. However, if such authority performs a service, which is not in the nature of statutory activity and the same is undertaken for a consideration not in the nature of statutory fee/levy, then in such cases, service tax would be leviable, if the activity undertaken falls within the ambit of taxable services.

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