Classified in to ..
1) General Exemption
2) Mega Exemption under Notification 25/2012 dated 20th June 2012.
General Exemption :
1) Small Service Provider (S.S.P.)
A service provider, whose taxable service in previous year are less than or equal to Rs. 10 Lakhs. Such limit is called as threshold limit. Also registration is not required when taxable service provided by them is valued up to Rs. 9 Lakhs. Capital Goods purchased during the period of exemption not qualify for CENVAT credit. The limit of Rs. 10 lakhs is computed on the basis of the value of invoices in a financial year & not on the basis of payment received.
Exceptions (Exemption is not available) :
i) Taxable Turnover exceeds Rs. 10 Lakhs
ii) Service recipient has to pay service tax
iii) Provider of service under the brand name of others.
2) Exemption on services to Special Economic Zone (SEZ)
3) Exemption to extent of Research & Development cess paid on import of technology.
4) Exemption of services to foreign diplomatic mission.
5) Exemption on services by Technology Business Incubatee (TBI) & Science & Technology Entrepreneurship park (STEP)
6) Exemption from education cess & secondary & higher education cess, where service tax is exempted.
7) Exemption to specified export promotion schemes – Focus Market scheme, Focus Product Scheme & Vishesh Krishi & Gram Udyog Yojana.
