Service tax can be partially or totally exempted by issuing an ‘exemption notification’u/s 93 of Finance Act, 1994 by the Central Government . Exemption may be conditional or unconditional. The only limitation is that exemption cannot be granted by Central Government with retrospective effect. There are following general exemptions –
- Small service providers – Small units whose turnover less than ` ten lakhs per annum are exempt from
service tax. Provisions are discussed please click the link (The exemption limit was ` four lakhs upto 31-3-2007).
- Export of Services – There is no service tax on export of services, if service is exported as per ‘Export of
- Services to UN Agencies – Services provided to UN and International Agencies are exempt [Notification No.
16/2002-ST dated 2-8-2002].
- Services provided within SEZ – Provision are discussed please click the link