EXEMPTION FROM SERVICE TAX

EXEMPTION FROM SERVICE TAX

1. SPECIFIC EXEMPTIONS WHICH ARE APPLICABLE FOR FEW SPECIFIED SERVICES

Exemption of specified services received by an exporter and used for export of goods – Notification No. 17/2009 dated 07.07.2009

Taxable services specified in column (3) (‘specified services’) received by an exporter and used for export of goods (‘said goods’), are exempt from payment of service tax levied under section 66 and section 66A.

Sr. No.	Classification	Taxable Services which are exempt	Conditions
1	2	3	4
1.	General insurance business- 65(105)(d)	Service provided to an exporter by an insurer (including a reinsurer) carrying on general insurance business in relation to insurance of said goods.	Exporter shall submit document issued by the insurer, including reinsurer, for payment of insurance premium and the document shall be specific to export goods and shall be in the name of the exporter.
2.	Port Services- 65(105)(zn)	Service provided by a port[1](or any person authorised by the port) in respect of the export of said goods.
3.	Technical testing and analysis services- 65(105)(zzh)	Service provided by a technical testing and analysis agency, in relation to technical testing and analysis of said goods.
4.	Technical inspection and certification services- 65(105)(zzi)	Service provided by a technical inspection and certification agency in relation to inspection and certification of export goods.
5.	Other Port Services- 65(105)(zzl)	Service provided by other port[2](or any person authorised by that port) in respect for export of said goods.
6.	Transport of goods by road in a goods carriage- 65(105)(zzp)	(i) Service provided for transport of said goods from the inland container depot to the port of export; (ii) Service provided to an exporter in relation to transport of export goods directly from the place of removal, to inland container depot or port or airport, as the case may be, from where the goods are exported.	(i) Exporter shall certify that the benefit of exemption provided vide notification number 18/ 2009 - S.T. has not been claimed; and (ii) those specified in the invoice of exporter relating to export goods, are specifically mentioned in the lorry receipt and the corresponding shipping bill.
7.	Transport of goods in containers by rail- 65(105)(zzzp)	(i) Service provided for transport of said goods from the inland container depot to the port of export, and (ii) services provided to an exporter in relation to transport of export goods directly from the place of removal to inland container depot or port or airport, as the case may be, from where the goods are exported.	Invoice issued by the exporter in relation to export goods shall indicate the inland container depot or port or airport from where the goods are exported.
8.	Cleaning activity services- 65(105)(zzzd)	Specialized cleaning services namely disinfecting, exterminating, sterilizing or fumigating of containers used for export of said goods provided to an exporter.
9.	Storage or warehouse keeper services- 65(105)(zza)	Service provided for storage and warehousing of said goods.
10.	Courier agency services- 65(105)(f)	Service provided by a courier agency to an exporter in relation to transportation of time sensitive documents, goods or articles relating to export, to a destination outside India.	(i) The receipt issued by the courier agency shall specify the importer-exporter code, (IEC) number of the exporter, export invoice number, nature of courier, destination of the courier including name and address of the recipient of the courier; and (ii) exporter produces documents relating to the use of courier service to export goods.
11.	Custom house agent services- 65(105)(h)	Service provided by a custom house agent in relation to export goods exported by the exporter.	Exporter shall produce,- (i) invoice issued by custom house agent which specifies: (a)    number and date of shipping bill; (b)   number and date of the invoice issued by the exporter relating to export goods; (c)    details of all the charges, whether or not reimbursable, collected by the custom house agent from the exporter in relation to export goods; (ii) details of other taxable services provided by the said custom house agent and received by the exporter, whether or not relatable to export goods.
12.	Banking and other financial services rendered by a banking company or a financial institution- 65(105)(zm)	(i) Service provided in relation to collection of export bills; (ii) Service provided in relation to advising export letters of credit such as advising commission, advising amendment and confirmation charges. (iii) Service of purchase or sale of foreign currency, including money changing provided to an exporter in relation to export goods.
13.	Foreign exchange broker- 65(105)(zzk)	Service of purchase or sale of foreign currency provided to an exporter in relation to export goods.
14.	supply of tangible goods for use services- 65(105)(zzzzj)	Service of supply of tangible goods for use, without transferring right of possession and effective control of tangible goods, provided to an exporter in relation to goods exported by the exporter.
15.	Clearing and forwarding agent services- 65(105)(j)	Service provided by a clearing and forwarding agent in relation to export goods exported by the exporter.	Exporter shall produce: (i) Invoice issued by clearing and forwarding agent for providing services specified in column(3) specifying: (a)              Number and date of shipping bill; (b)             Description of export goods; (c)              Number and date of the invoice issued by the exporter relating to export goods; (d)             Details of all the charges, whether or not reimbursable, collected by the clearing and forwarding agent from the exporter in relation to export goods; (ii) Details of other taxable services provided by the said clearing and forwarding agent and received by the exporter, whether or not relatable to export goods.
16.	Classified under any sub-clause of clause (105) of section 65.	Payment of service tax paid on services commonly known as terminal handling charges.
17.	Services of transport of coastal goods, goods through national waterway or inland water. 65(105)(zzzzl)	Services provided for transport of export goods through national waterway, inland water and coastal shipping.	The exporter shall: (a)             Produce the Bill of Lading or a Consignment Note or a similar document by whatever name called, issued in his name; (b)            Produce evidence to the effect that the said transport is provided for export of relevant goods.

[1] "port" has the meaning assigned to it in section 2(q) of the Major Port Trust Act, 1963.

[2] "other port" has the meaning assigned to "port" in section 3(4) of the Indian Ports Act, 1908, but does not include the port defined in section 3(81) of the Indian Ports Act, 1908.`

Follow Us on