Valuation of Medical facilities to salaried person.

Valuation of Medical facilities to salaried person.

Following facilities will not be included in Income of employee.

1. Medical facility provided in a hospital,clinic ,dispensary or nursing home maintained by the employer.
2.  Reimbursement of medical expenditure by the employer, incurred by employee on his or treatment of his family member.
   
• in any govt hospital (including dispensary /clinic or nursing home) or 
• hospital (including dispensary /clinic or nursing home) maintained by Local authority or approved for govt employees . 
  
3. Value of medical treatment for prescribed diseases or ailments in any hospital approved by the Chief Commissioner of Income tax.For claiming this benefit the employee needs to attach with his income-tax return a certificate from the hospital specifying the disease or ailment and receipt for the amount paid.(from ay 2008-09 nothing is to be attached with ITR form)
   
4. Besides, any sum paid by the employer towards medical reimbursement other than as discussed above is exempt up to Rs.15,000/-. 
5.  Any portion of premiums paid by the employer for health insurance of the employees(group insurance) under schemes approved by the Government or the Insurance Regulatory and Development Authority.
6. Any sum paid (reimbursement)by the employer in respect of premium paid by the employee for the health (medi claim policy)of his or his family, under schemes approved by the Government or the Insurance Regulatory and Development Authority that qualifies for deduction under section 80D of the Income-tax Act.
7. Expenditure incurred by the employer on medical treatment of the employee or his family member for medical treatment.outside India. This includes travel and stay abroad of the employee or the family member plus one attendant who accompanies the patient in connection with the medical treatment. This exemption is subject to the condition that:
• the expenditure excluded from the perquisite value shall be to the extent permitted by the Reserve Bank of India;and
• the travel expenditure is excluded only if the gross total income of the employee before including such travel expenditure does not exceed Rs. 2 lakhs. 
  

so other than above the medical facility is taxable in hands of employee.Treatment amount ,reimbursement , unapproved /non govt Hospital other than as explained in point no 2 above  up to 15000 is not be  included in salary and amount in excess of 15000 is to be included in employee's salary.

Now point wise answer to your queries.

whether the medical reimbursement given to an employee against medical bills submitted by them for Rs. 15000/-(maximum limit) is it taxable or does it have any effect on the gross income of an employee. Is there any exemption to this amount. 

• As explained above, valuation of reimbursement upto 15000 rs per annum in non approved /non govt hospital is to be taken as nil .so the amount up to 1500o per annum have no effect on gross Income of an employee.Please note that this is under valuation rule and not an exemption.

Whether to take this income of any employee into account while calculating Income Tax while preparing Form 16.?

• The answer is yes,If the amount is taxable in employee's hand then we have to show it in Form 16.In form 16 ,there is sub part of gross salary part 1(b) "value of perquisites under section 17(2)",so under this head we will show amount taxable from the facility of medical treatment.But if value of medical facility is nil as per above details then nothing is to be shown .Form 12BA for valuation of perquisites is also required to be issued ,where there is a value of perquisites has been added in the income of the employee.

if the employee claims mediclaim policy reimbursement from the employer for the insurance premium paid does this becomes a part of his gross income & whether tds should be deducted in this amount?

• Amount reimbursement for mediclaim policy by employer , is also exempted as given above ,(point no 6)  hence not to be included  in employee's salary so no TDS is required to be deducted.If any reimbursement which is not covered under above rules then that amount is top be included in employee salary ,tds is also to be deducted and detail are also required to be shown in form 16 and 12BA.

For example RaJiv has taken following medical facilities from his employer .

1. Treatment form Hospital maintained by employer(appox expenses 100000):Noting is taxable as medical facilty value for Income tax purpose is NIL.
2. Treatment in Govt Hospital :Hospital bill 2000 and medicine purchased from private shop against treatment in govt hospital:20000:Full 20000+2000 is not to be included in salary as the treatment in govt hospital.
3. Treatment in pvt Hospital  amount Rs 25000: In this case 15000 is exempted and 10000 is taxable.
   

so In above example from 147000(100000+22000+25000) only 10000 is taxable in rajiv 's hand and on this 10000 tds is required to be deducted and this 10000 amount will also be shown in Form 16 and form 12BA.

Source : http://www.simpletaxindia.net/2009/02/valuation-of-medical-facilities-to.html

Income Tax for Pensioners on Pension Amount

What is Pension?

Pension is described in Section 60 and Section 11 of the Pension Act as a periodical allowance or stipend granted on account of past service, particular merits, etc

It involves three essential features, firstly, pension is a compensation for the past service, secondly, it owes its relationship to a past employer-employee relationship or master servant relationship. Lastly, it is paid on the basis of earlier relationship or agreement of services as opposed to an agreement for ongoing service.

Pension received from a former employer is taxable as salary. As such the relevant provisions of TDS as specified in Section 192 and other relevant provisions are also applicable to pension income and tax is deductible on the same, as in the case of payment of salary.

How the Income Tax is collected on Pension Amount?

As already seen, TDS is the best medium of collecting income tax from the citizens without much of hassles, as the responsibility to deduct tax is not on the government, but on citizen-payers. Tax department accords a lot of importance to TDS as a source of generating revenue and to administering the TDS provisions more vigorously. That is why several different payments and all persons making such payments have been covered within the ambit of TDS provisions and the scope for the same is being increased day after day.

After the implementation of Sixth Pay Commission recommendations, substantial arrears were paid to the pensioners through nationalized banks. Because of this several pensioners who were earlier receiving pension amount less than Annual Income Exemption Limit may now be subjected to tax during this year as well as in future years due to increase in the monthly pension amounts. While conducting concurrent audit of banks, the issue of applicability of TDS provisions on such pension payments seems to have come up for consideration.

This article is an effort to make the reader understand the TDS provisions on pension payment, its applicability & implications.

How the Taxation on Pension does get implemented?

Before we discuss the TDS provisions applicability on the pension payments, it is pertinent to discuss the scheme of taxation for the pension. The provisions for taxation of Pension under the Income Tax Act, 1961 may be summarized as explained underneath.

Regular Pension

The common use of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal and / or contractual terms.

Exemptions available, if any

Yes. The Section 10(18)(i) Stipulates that Pension amounts received by any individual who is in receipt of Param Vir Chakra, Maha Vir Chakra or other gallantry awards from Central or State Government are fully exempt from Income Tax.

Except for above mentioned exemption, pension amount is taxable in all cases. It is taxable under Income from Salary as Section 17(1) (ii) defines salary to include pension as well.

Special Exemption Category

Pension to officials of UNO is exempt from taxation. Section 2 of the UN (Privilege & Immunities) Act, 1947 grants tax exemption to salaries / emoluments paid by U.N. The Karnataka High Court had held that u/s 17 of the Indian Income Tax Act, salary has been defined as including pension, and therefore, if salary received from UN is exempt, so shall be the pension. This decision was accepted by the CBDT, and is in force. This also makes it clear that employees of UN are exempt from Income Tax on Salaries too.

Commutation of Pension

commutation of Pension means payment of lump sum amount in lieu of a portion of pension surrendered voluntarily by the pensioner based on duration of period in relation to the age.

Exemptions – Under Sections 10(10A) (i) (ii) and (iii)

(i) Commutation of pension under Civil Pensions (Commutation) Rules or under any other scheme for Central, State or Local Authority employees

(ii) For employees of nongovernmental employers, 1/3rd or ½ of full value of pension is exempt depending upon the fact whether gratuity has also been paid to such person or not.

(iii) Commutation of pension from fund under section 10(23AAB)

Excess amount received, if any, over and above the limits specified u/s 10(10A) above is taxable under the head Income from Salary.

From the above it is very clear that pension annuity is generally taxable while commutation of pension may be exempt from tax. Further, pension annuity is taxed under "Income from Salary". Thus, question of TDS will arise only in respect of taxable pensions & not on exempt pension income for obvious reasons.

With this, let us move now move on to discuss the TDS applicability.

TDS provisions on Pension

Chapter XVII-B of The Income Tax Act, 1961 contains the provisions relating to Tax Deduction at source (TDS). The very first section, i.e. Section 192 is TDS on Salary. Since we have already mentioned that Pension annuity is taxed under Income from salary, let us study this section to find whether it covers pension as well.

Section 192 (1) of the Income Tax Act states that – "Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year."

As it is clearly stated in the above Section of Indian Income Tax, one can easily understand that the section applies to any income chargeable under the head "Salaries". Annuity pension as discussed above is covered by the definition of salary u/s 17 (1) (ii), so the TDS provisions u/s 192 are applicable to Annuity pension payments as well.

Moving ahead from here, you may kindly note that the section vests the responsibility on "Any person responsible for paying any income chargeable under the head "Salaries".  The wordings clearly indicates that it is the "person responsible for paying" who has to comply with the TDS provisions & thus such person may not always be the past employer. It implies that the banks, which disburse the pension amount, are also under the ambit. This was clearly indicated by us in the fourth para of this article.

In this connection, Section 204(i) is relevant which defines "person responsible for paying". It states that  "person responsible for paying" in the case of payments of income chargeable under the head "Salaries", other than payments by the Central Government or the Government of a State, the employer himself or, if the employer is a company, the company itself, including the principal officer thereof.

By now It is clear that it is the past employer who may be the "person responsible for payment' in case of non-government pensioners, while as far as Central and State Govt. pensioners are concerned it is the nationalized banks which have been entrusted with the task of payment of pension which are considered as person responsible for payment. 

Note

In cases where companies have entered into contract with the Insurance companies (called as superannuation plans) for payment of pension, then such Insurance Company will become the person responsible for payment and has to comply with the TDS provisions. 

Implication of TDS on Pension Annuity - (for pensioners)

Having understood that Pension Annuity is subjected to TDS u/s 192(1), by past employer or Insurance companies, as the case may be for non-govt. pensioners and nationalized banks in case of govt. pensioners, let us now discuss its applicability and implementation methods.

When TDS will be applicable on Annuity Pension?

When the pension annuity (Annuity as a terminology is used by the Indian Income Tax Authorities. For simple understanding, it is nothing but Annualized amount of the monthly pension) for the year exceeds the maximum exemption limit for the relevant financial year. (e.g. – In case of men below 65 years Rs. 1.60 Lacs, women below 65 years Rs. 1.90 Lacs & Senior Citizens – Rs. 2.40 Lacs for F.Y. 2009-2010) (Incidentally it is also the Income Tax Exemption Limit for Financial Year 2009 -2010. You may read about it in detail from this Article).

While working employees submit the proofs of investments u/s 80 C, 80 D etc. to their employers to reduce / avoid TDS, can pensioners also submit the same to "person responsible for payment" which includes nationalized banks as well?

Yes off course. How there can be partiality or selective treatment between existing employees vis-à-vis retired persons? The procedure to be followed once Section 192 is applicable will be the same irrespective of the fact whether it is salary or it is pension. CBDT generally issues circular every year explaining procedure to be followed & compliances to be done u/s 192 of the Income Tax Act, which states that pensioners can submit such proofs to person responsible for payment including to the banks.

Can a pensioner submit the Form 15G / 15 H or other declaration for non-deduction of TDS from pension payments?

No. The reason is, the declarations with form 15G / 15H etc. are prescribed by section 197A of The Income Tax Act, 1961 but it is does not cover TDS u/s 192. So where pension / arrears exceed the maximum exemption limit after permissible chapter VI A deductions & / or Relief u/s 89, banks & other persons responsible for payment are duty bound to deduct tax at source.

After deduction of Tax at source from payment, pensioners are expected to receive TDS certificate in which from – whether Form 16 or Form 16 A?  

Yes. Once tax has been deducted under section 192 of the Income-tax Act, 1961, the tax-deductor is bound by section 203 to issue the certificate of tax deducted in Form 16. No employee-employer relationship is necessary for this purpose, and secondly the certificate in Form No. 16 cannot be denied on the ground that the tax deductor is unaware of the payees other income.

Conclusions for Pensioners on Income Tax

• Income from Pension Annuity is covered by TDS provisions u/s 192.
• There is no TDS provision for payment of family pension.
• Banks paying pension on behalf of govt. is the person responsible for payment & hence is liable to comply with the TDS provisions & will be penalized in case of default. In case of pension amounts received by non-governmental persons, the company is responsible for TDS, failing which penalty as well as penal interest would be levied on them.
• Pensioners can submit proofs for deduction u/s 80C, 80 D etc, & even entitled to relief u/s 89 (in case of arrears) to avoid TDS & are entitled to receive Form 16 from banks in case of tax deduction.
• There is no provision to give declarations by pensioners like 15 G /H to avoid TDS.

 

http://www.finance.pushpi.com/income-tax-for-pensioners-on-pension-amount.htm

 

DUE DATE ETDS RETURNS & PENALTY INCREASED

DUE DATE ETDS RETURNS QTR-1 15 JULY PENALTY INCREASED 

The last date for filing TDS / TCS Returns for the first quarter pertaining to financial year 2012-13 is 15th July 2012 for non govt deductors and 31.07.2012 for Govt deductors. All tax deductor are strongly advised to file their returns on or before this date to avoid the recently enhanced fine and penalty that is effective from 1st July 2012. 

As 15th July 2012 is a Sunday, it is suggested that returns should be filed by 14th July. However, as per the Clause 10 of General Clauses Act 1897, filing returns on 16th July 2012 should be considered as submission on time.But we recommend if  TIN-FC's are accepting returns on Sunday ,15th July ,2012 then we should submit the same on the same date.

As per the newly inserted Section 234E, if a person (deductor) fails to deliver the TDS statement or TDS return in the time prescribed, then the person shall be liable to pay a fine of Rs. 200 for everyday till the default continues subject to a maximum of the total amount of tax deductible . Moreover, there are penalty provisions as defined in Section 271H. 

Due Dates For ETDS returns (Form 24Q for salary and 26Q for contractors others ,27Q for Non-resident

Due date ETDS return 24Q, 26Q 27Q and Form16 ,Form 16A
Sl. No.	Quarter ending	From 01.11.2011 on wards For Govt offices		For other deductors
		Etds return	Form 16A	Etds return	Form 16A
1	30th June,2012	31st July ,2012	15th August ,2012	15th July,2012	30th July,2012
2	30th September,2012	31st October,2012	15th November,2012	15th October,2012	30th October,2012
3	31st December,2012	31st January,2013	15th Feburary,2013	15th January,2013	30th January,2013
4	31st March,2013	15th May ,2013	30th May ,2013     (31st May   for form 16)	15th May,2013	30th May,2013        (31st May for form 16)

Source : http://www.simpletaxindia.net/2012/07/due-date-etds-returns-qtr-1-15-july.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+SimpletaxIndia+%28SIMPLE+TAX+INDIA%29

Service tax: Govt exempts rail fares, freight till Sept.2012

Passenger fares and freight charges will not go up immediately as the Finance Ministry Monday issued a notification exempting the railways from 12 percent service tax for three months till September 30.

"Government has exempted the core services provided by the Indian Railways, namely transportation of goods and passengers, from the levy of service tax. The exemption will remain effective for a period of 3 months, up to September 30, 2012," said a finance ministry statement.

Last week, Railway Minister Mukul Roy had written to Prime Minister Manmohan Singh, who is now looking after the Finance portfolio, requesting him not to introduce service tax on passenger fare and freight traffic from July 1.

The Finance Ministry has moved to a new regime of Service Tax based on negative list from July 1, under which only 38 services are exempted from payment of the levy.

Service tax on railway passenger travel and freight was introduced in the Budget for 2009-10 but was kept on hold due to the then Railway Minister Mamata Banerjee's opposition. The exemption has been extended since then on quarterly basis.

Earlier, Roy had also requested former Finance Minister Pranab Mukherjee to exempt Railways from paying service tax.

Had the government imposed 12 percent service tax on railways, passenger fares in all AC classes and first class would have gone up by 3.6 percent.

As per the estimates, railways would have to bear a burden of Rs 6,000 crore had it decided against passing on the service tax burden on the passengers.

The introduction of new Service Tax regime, based on negative list from July 1, would bring into net a host of activities like speed post and express parcel service of the post office, earnings of TV and theatre artists.

Under the new dispensation, with the exception of 38 services, which figure in the negative list, all other activities would attract 12 percent tax if the value of the service exceeds Rs 10 lakh.

Besides, air tickets and overseas holiday packages bought from online portals would be subject to the levy. Also, tests like GMAT and GRE would get more expensive as the institutions which conduct these exams would be subject to tax. However, entrance tests of institutions such as IITs and IIMs will be exempt from the levy.

Private tuition providers will now be subject to service tax if their annual turnover exceeds Rs 10 lakh, although it will not be levied on schools, university education and approved vocational courses.

As per the negative list, services like metered taxis, auto rickshaws, betting, gambling, lottery, entry to amusement parks, transport of goods or passengers and electricity transmission or distribution by discoms have been kept in the negative list.
Other important services which will not attract the tax include funeral, burial, mutate services and transport of deceased.

The government has widened the definition of 'Services' to bring in more activities under the tax net. Till now, 119 services that come under 'positive list' are subject to the levy.

The switch-over to a negative list is expected to help in smooth transition towards the Goods and Service Tax (GST) regime and would also expand the tax base. This is also expected to increase the Centre's Service Tax collection to Rs 1.24 lakh crore in 2012-13, a 30 percent jump from Rs 97,000 crore in the last fiscal

Besides, services provided to the government, local authorities or a government authority for the repair and maintenance of an aircraft would also come in the negative list.

Also, services provided by advocates to other advocates and business entities up to a turnover of Rs 10 lakh in the preceding financial year is exempt from service tax.

Services provided by way of public convenience such as provision of facilities of bathroom, washroom, urinals or toilets would be included in the negative list.

The other services which would be exempted from tax include auxiliary educational services and renting of immovable property by educational institutions in respect of education exempt from service tax.

Besides, services relating to works contract to a scheme under JNNURM or Rajiv Awas Yojana would also come under the negative list. 

http://zeenews.india.com/business/news/economy/service-tax-govt-exempts-rail-fares-freight-till-sept_54895.html

E-filing of returns must for income over Rs 10 lakh

People with annual income of over Rs 10 lakh will have to file their tax returns for 2011-12 electronically .

The Central Board of Direct Taxes (CBDT) has issued a notification making e-filing compulsory for assessment year 2012-13 onwards for an individual or a Hindu Undivided Family if his or its total income exceeds Rs 10 lakh.

However, digital signature will not be mandatory for these taxpayers, the Finance Ministry said in a statement.

E-filing for such assessees was optional till 2010-11.

The Income Tax Department had received a record 1.64 crore e-Returns in 2011-12 financial year.

Currently, 'Business Houses' with receipts of Rs 60 lakh and professionals with income of Rs 15 lakh are mandatorily required to e-file their return with digital signature.

As on March 31, 2012, there were 19,684,592 tax payers who had registered for e-filing.

The ministry said, "e-filing is an easy, fast and secure method of filing income tax return" and "the processing for e-filed return is faster and taxpayers get their refunds, if due, quickly".

The electronically filed returns are processed at Centralised Processing Centre, Bengaluru.

The Income Tax Department also provides some value added services like tracking of refunds and viewing of tax credit status.

.

 http://businesstoday.intoday.in/story/e-filing-of-returns-must-for-income-over-rs-10-lakh/1/185983.html

HOW TO GET FORM 16A ON ONLINE

In order to enable you to generate the TDS Certificates through TIN Website, you will be required to follow the following steps:

1. The deductor has to register their TAN with NSDL website. Click on the "Online TAN Registration" available in the home page of www.tin-nsdl.com and follow the due procedures mentioned therein.

2. Upon registration the deductor would be allotted a Reference Number. Note down this number.

3.   The deductor will also receive an email from NSDL informing the Reference Number, User Name, Password…etc

4. After confirmation of registration formalities, again visit the website www.tin-nsdl.com and Login to TAN Account

5. Provide the User Name, Password and TAN Number

6. Provide the details as asked for by the website for every quarter. You will receive by email a text file from NSDL.

7. Now the said text file needs to be converted into a PDF file / TDS certificate (Form 16A). Requisite conversion software provided in the website itself.

8. Once converted, the TDS certificates will be saved in the computer automatically at the defined path.

9. Take print out of the certificates and check the same for 100% accuracy

10. If found in order, affix seal and signature and issue the certificate to the deductees by either using digital signature or manual signature.

Author Email-   mr_manish_ca@yahoo.com

(Article was First Published on 27.05.2011 and Republished on 17.04.2012)

 

sOURCE :http://taxguru.in/income-tax/download-online-tds-certificates-form-16a-nsdl-website.html

Service tax – Exempt Services w.e.f. 01.07.2012 & Exemption

The Central Government vide Notification No. 19/2012-ST dated 05.06.2012 has announced Date of Introduction of new regime of most awaited Negative List approach in Service Tax, which will apply w.e.f. 01.07.2012 i.e. service tax would be applicable on all services except those mentioned either in the Negative List or in the Mega Exemption videNotification No. 12/2012-ST dated 17.03.2012.

EXEMPTIONS UNDER MEGA NOTIFICATION N. 12/2012 dated 17.03.2012 w.e.f. 01.07.2012

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

2.  Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

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;

 6.  Services provided to any person other than a business entity by:—

(a)  an individual as an advocate; or

(b)  a person represented on and as arbitral Tribunals;

 7.  Services by way of technical testing or analysis of newly developed drugs, including vaccines and herbal remedies, on human participants by a clinical research organisation approved to conduct clinical trials by the Drug Controller General of India;

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

9.  Services provided:—

(a)  to an educational institution by way of catering under any centrally assisted mid-day meals scheme sponsored by Government;

(b)  to or by an institution in relation to educational services, where the educational services are exempt from the levy of service tax, by way of transportation of students or staff;

(c)  to or by an institution in relation to educational services, where the educational services are exempt from the levy of service tax, by way of services in relation to admission to such education;

10.  Services provided to a recognised sports body by:—

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

(b)  another recognised sports body;

11.  Services by way of sponsorship of tournaments or championships organized:—

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

(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, 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 or local authority by way of erection, construction, maintenance, repair, alteration, renovation or restoration of:–

(a)  a civil structure or any other original works meant predominantly for a non-industrial or non-commercial use;

(b)  a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under 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) drinking water supply (ii) water treatment (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 65B of the said Finance Act;

13.  Services provided by way of erection, construction, maintenance, repair, alteration, renovation or restoration of:—

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

(b)  building owned by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) and meant predominantly for religious use by general public;

(c)  pollution control or effluent treatment plant, except located as a part of a factory; or

(d)  electric crematorium;

14.  Services by way of erection or construction of original works pertaining to:-

(a)  airport, port or railways;

(b)  single residential unit otherwise 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.  Temporary transfer or permitting the use or enjoyment of a copyright covered under clause (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic works or cinematograph films;

16.  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;

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 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 room 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, and which has a licence to serve alcoholic beverages;

20.  Services by way of transportation by rail or a vessel from one port in India to another of the following goods:-

(a)  petroleum and petroleum products falling under Chapter headings 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, mail bags or household effects;

(e)  newspaper or magazines registered with Registrar of Newspapers;

(f)  railway equipments or materials;

(g)  agricultural produce;

(h)  foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or

(i)  chemical fertilizer and oilcakes;

21.  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 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;

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

(b)  a contract carriage for the transportation of passengers, excluding tourism, conducted tour, charter or hire;

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

25.  Services provided to the Government or a local authority 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;

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;

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

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

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

28.  Service by an unincorporated body or an entity registered as a society to own members by way of reimbursement of charges or share of contribution:–

(a)  as a trade union;

(b)  for the provision of exempt services by the entity to third persons; 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)  a sub-broker or an authorised person to a stock broker;

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

(c)  a mutual fund agent or distributor to mutual fund or asset management company for distribution or marketing of mutual fund;

(d)  a selling or marketing agent of lottery tickets to a distributor or a selling agent;

(e)  a selling agent or a distributor of SIM cards or recharge coupon vouchers; or

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

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 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.  Services by way of making telephone calls from:–

(a)  departmentally run public telephones;

(b)  guaranteed public telephones operating only for local calls; or

(c)  free telephone at airport and hospitals where no bills are being issued;

33.  Services by way of slaughtering of bovine animals;

34.  Services received from a service provider located in a non- taxable territory by -

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

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

Definitions. – For the purpose of these exemptions, unless the context otherwise requires,–

1.  "advocate" has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 ( 25 of 1961),

2.  "appropriate duty" means duty payable on manufacture or production under a Central or a State Act, but shall not include 'Nil' rate of duty or duty wholly exempt,

3.  "arbitral Tribunal" has the meaning assigned to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996),

4.  "authorised medical practitioner" means any medical practitioner registered with any of the Councils of the recognised system of medicine and includes medical professional having the requisite qualification to practice in any recognised system of medicine as per any law for the time being in force,

5.  "authorised person" means and includes any person whether being an individual, partnership firm, limited liability partnership or body corporate, who is appointed as such either by a stock broker including trading member or by a member of commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange, as an agent of the stock broker or member of a commodity exchange,

6.  "banking company" has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934),

7.  "business facilitator or business correspondent" means an intermediary appointed under business facilitator model or business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India,

8.  "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 recognised 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,

9.  "charitable activities" means activities relating to–

(a)  public health by way of –

 I.  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

 II.  public awareness of preventive health, family planning or prevention of HIV infection;

(b)  advancement of religion;

(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 lakh rupees in a financial year subject to the condition that total value of such activities had not exceeded twenty five lakh rupees during the preceding financial year; or

Explanation: - For the purpose of this clause, 'general public' means the body of people at large sufficiently defined by some common quality of public or impersonal nature,

10.  "commodity exchange" means an association as defined in section 2(j) and recognized under section 6 of the Forward Contracts (Regulation) Act, 1952,

11.  "contract carriage" has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988),

12.  "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,

13.  "distributor or selling agent" has the meaning assigned to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include distributor or selling agent authorised by the lottery organising State,

14.  "general insurance business" has the meaning assigned to it in clause (g) of section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972),

15.  "goods carriage" has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988),

16.  "health care services" means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised 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, but 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,

17.  "incubatee" means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agreement with the TBI or the STEP to enable himself to develop and produce hi-tech and innovative products,

18.  "insurance company" means a company carrying on life insurance business or general insurance business,

19.  "life insurance business" has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938),

20.  "original works" 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,

24.  "principal manufacturer" means any person who gets goods manufactured or processed on his account from another person,

25.  "recognized sports body" means:-

(i)  the Indian Olympic Association, (ii) Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level,

26.  "religious place" means a place which is primarily meant for conduct of prayers or worship pertaining to a religion,

27.  "residential complex" means any complex comprising of a building or buildings, having more than one single residential unit,

*25. "rural area" means the area comprised in a village as defined in land revenue records, excluding,-

 (i)  the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee; or

(ii)  any area that may be notified as an urban area by the Central Government or a State Government,

28.  "single residential unit" means an independent residential unit with specific facilities for living, cooking and sanitary requirements,

29.  "specified international organisation" means an international organisation declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply,

30.  "state transport undertaking" has the meaning assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988),

31.  "sub-broker" has the meaning assigned to it in sub-clause (gc) of clause 2 of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) (Second Amendment) Regulations, 2006,

*30.  "trade union" has the meaning assigned to it in clause (h) of section 2 of the Trade Unions Act, 1926 (16 of 1926).

 

GIST OF OTHER EXEMPTIONS

A. Small scale exemption

1. For the service provider for the taxable services of aggregate value not exceeding ten lakh rupees in a financial year subject to certain conditions.

B. Exporters/SEZ

2. Transportation of export goods by Goods Transport Agency in a goods carriage received by an exporter for transport of the said goods directly from -

  i.  any container freight station or inland container depot to the port or airport, from where the goods are exported;

 ii.  his place of removal, to an inland container depot, a container freight station, a port or airport, from where the goods are exported.

3. Refund of service tax paid on certain specified taxable services received by an exporter of goods and used for export of goods, subject to certain specified conditions.

4. Taxable services, received by a unit located in a Special Economic Zone or Developer of SEZ for the authorised operations.

C. Import of technology

5. 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.

D. Services to foreign diplomatic mission

6. 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.

E. Services by TBI or STEP

7. 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.

F. Renting of an immovable property

8. Taxable service of renting of an immovable property, from so much of the service tax leviable theron, 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.

G. Abatement

9. Exemption from so much of the service tax leviable, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (3) of the following Table, of the gross amount charged by such service provider for providing the said taxable service, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table :

TABLE

Sl. No.	Description of taxable service	Percentage	Conditions
(1)	(2)	(3)	(4)
1	Financial leasing services including equipment leasing and hire purchase	10	Nil
2	Transport of goods by rail	30	Nil
3	Transport of passengers, with or without accompanied belongings by rail	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 Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) has not been taken under the provisions of the CENVAT Credit Rules, 2004.
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	70	Same as above.
9	Renting of any motor vehicle designed to carry passengers	40	Same as above.
10	Transport of goods in a vessel from one port in India to another	50	Same as above.
11	(i) Services provided or to be provided to any person, 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.
	(ii) Services provided or to be provided to any person, by a tour operator in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour	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.
	(iii) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour	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.

Source : http://taxguru.in/service-tax/exemption-service-involving-import-technology-wef-01072012.html