|
Description of service
|
Coverage
|
Exclusions/Exemptions
|
|
Advertising agency
|
Statutory coverage
 | “advertisement” includes any notice,
circular, label, wrapper, document, hoarding or any other
audio or visual representation made by means of light, sound,
smoke or gas [Section 65(2)]
|
| Service connected with the making,
preparation, display or exhibition of advertisement taxable.
|
| Services of advertising consultant. Taxable
[Section 65(3)]
|
Case Law/Board Circulars
·
Tax
only on commission, not on advertisement charges paid to media or
TV
|
Exclusions
| Sale of space or time for advertisement
taxable under different head.
|
| Space selling taxable under BAS
|
| Preparing sign board or hoardings not taxable.
|
Exemptions
·
See
para 12.3 for general exemptions.
|
|
Air transport of passengers embarking for international
travel
|
Statutory coverage
| Service in relation to scheduled or
non-scheduled air transport of such passenger embarking in
India for international journey, in any class other than
economy class.
|
Case Law/Board Circulars
| Tax is payable for entire journey even if
there is stop over in between.
|
| In case of round trip or return ticket,
service tax is payable on total value of ticket.
|
|
Exclusions
·
Economy
class passengers are excluded.
Exemptions
·
See
para 12.3 for general exemptions.
|
|
Airport Services
|
Statutory coverage
| Service by airports authority or any person
authorised by it, in an airport or a civil enclave.
|
Case Law/Board Circulars
·
Services statutorily provided by AAI as stated in MF(DR)
circular No. B2/8/2004-TRU dated 10-9-2004 are only taxable.
|
Exemptions
See
para 12.3 for general exemptions.
|
|
Air travel agent
|
Statutory coverage
| Service in relation to the booking of passage
for travel by air.
|
Case Law/Board Circulars
·
Tax
is payable only on commission and other charges but relating to
booking of passage for air travel.
|
Exclusions
| Services of GSA (General Sales Agent)
appointed by foreign airlines are taxable under ‘Business
Auxiliary Service’ and not under Air Travel Agent Service.
|
Valuation
| Air
travel agent has option to pay service tax @ 0.60% of basic
fare in case of domestic booking and @ 1.20% of the basic fare
in case of international bookings, of passage for travel by
air. In addition, education cess @ 2% and SAH education cess @
1% will be payable. |
Exemptions
See
para 12.3 for general exemptions.
|
|
Architect
|
Statutory coverage
| Services in the field of architecture.
|
Case Law/Board Circulars
·
Designing
or planning of construction of buildings, bridges, dams etc. and
its supervision
|
Exclusions
| Actual execution of work is not Architect’s
services.
|
| Interior design may be covered only to the
extent of architecture.
|
| No tax on material, furniture and temporary
structures
|
Exemptions
·
See
para 12.3 for general exemptions.
|
|
Asset Management including portfolio management
|
Statutory coverage
| Asset management including
portfolio management and all forms of fund management. |
Case Law/Board Circulars
·
Services
provided by individual service providers especially to high net
worth individuals
taxable.
|
Exclusions
·
Services by banking company or a financial
institution, NBFC or any other body corporate or commercial
concern taxable under ‘Banking and other Financial Services’
Exemptions
·
See
para 12.3 for general exemptions.
|
|
ATM operations, maintenance or management
|
Statutory coverage
| Automated teller machine (ATM) operations,
maintenance or management service, in any manner
|
| Includes site selection, contracting of
location, acquisition, financing, installation, certification,
connection, maintenance, transaction processing, cash
forecasting, replenishment, reconciliation and value-added
services [section 65(9b)]
|
|
Exclusions
·
No
service tax on cash withdrawn from ATM.
Exemptions
See
para 12.3 for general exemptions.
|
|
Auctioneers’ Service
|
Statutory coverage
·
Service
in relation to auction of property, movable or immovable, tangible
or intangible
·
Calling
the auction or providing a facility, advertising or illustrating
services, pre-auction price estimates, short-term storage
services, repair or restoration services in relation to auction of
property [section 65(7a)]
|
Exclusions
·
Auction
of property under the directions or orders of a court of law or
auction by the Government excluded.
Exemptions
·
See
para 12.3 for general exemptions.
|
|
Authorised service station
(Motor car/ Two-wheelers/LMV)
|
Statutory coverage
| Service
by an authorised service station, in relation to any service,
repair, reconditioning or restoration of motor cars, light
motor vehicles or two wheeled motor vehicles, in any manner.
|
| Light
Motor Vehicle (LMV) means any motor vehicle constructed or
adapted to carry more than six passengers, but not more than
twelve passengers, excluding the driver [section
65(62)]
|
Case Law/Board Circulars
| Free
service to our customers for which reimbursement obtained from
manufacturers is taxable.
|
| Service
tax payable on spare parts used during provision of service
- Ref Code 036.03/23.8.07 of CBE&C
Circular No. 96/7/2007-ST dated 23-8-2007 [doubtful]
|
|
Exclusions
| Service
provided at the time of purchase of new vehicle is not liable
to tax.
|
| Service
to transport vehicle, buses, trucks, omnibus, road-roller,
tractor, or invalid carriage is not covered
|
Exemptions
See para 12.3 for general exemptions.
|
|
Banking and Financial services
|
Statutory coverage
| Service by a banking company or a financial
institution including NBFC, or any other body corporate or commercial
concern, is taxable.
|
| Financial leasing
services including equipment leasing and hire-purchase. |
·
Merchant banking services
·
Securities and foreign exchange (forex) broking;
·
Asset management including portfolio management, all
forms of fund management, pension fund management, custodial,
depository and trust services
·
Advisory and other auxiliary financial services
including investment and portfolio research and advice, advice on
mergers and acquisitions and advice on corporate restructuring and
strategy
·
Provision and transfer of information and data
processing;
·
Banker to an issue services
| Other specified financial
services [section
65(12)] |
Case Law/Board Circulars
·
Cash management taxable
·
Business
chit funds are taxable - CBE&C Ref Code 034.04/23.8.07
of CBE&C Circular No.
96/7/2007-ST dated 23-8-2007
|
Exclusions
| Hire purchase finance not
taxable – Bajaj Auto
Finance v. CCE
(2007) 9 STT 569 (CESTAT). |
| Money changers who buys and sells foreign
exchange without charging commission or brokerage is not
liable - Ref Code 034.01/23.8.07 of CBE&C
Circular No. 96/7/2007-ST dated 23-8-2007.
|
| Stock Exchanges, commodity exchanges, stock clearing house
services not liable – CBE&C letter No. 137/57/2006-CX.4 dated 18-5-2007
|
| Simple chit funds not taxable but business
chit funds taxable - CBE&C Ref Code 034.04/23.8.07
of CBE&C Circular
No. 96/7/2007-ST dated 23-8-2007
|
| No service tax on entry and exit load
charged by mutual fund to the investor |
Exemptions
| Services provided to Government for tax collection exempt -
Notification No. 13/2004-ST dated 10-9-2004.
|
| Services provided by RBI exempt –Notification No. 22/2006-ST dated
31-5-2006.
|
| No service tax on interest charged by service
provider - rule 6(2)(iv)
|
| See para 12.3 for general exemptions.
|
|
|
Beauty treatment
|
Statutory coverage
| Services includes hair cutting, hair dyeing,
hair dressing, face and beauty treatment, cosmetic treatment,
manicure, pedicure or counselling services on beauty, face
care or make-up or such other similar services [section
65(17)].
|
Case Law/Board Circulars
·
Materials
used such as cosmetics and toilet preparations are includible for
valuation
|
Exclusions
·
No
tax on plastic surgery - CBE&C circular No.
B.11/1/2002-TRU dated 1-8-2002.
Exemptions
·
See
para 12.3 for general exemptions.
|
|
Broadcasting
|
Statutory coverage
| Service by a broadcasting agency or
organisation in relation to broadcasting
|
| In the case of a broadcasting agency or
organisation, having its head office situated in any place
outside India, includes service provided by its branch office
or subsidiary or representative in India or any agent
appointed in India.
|
| Services of selling of time slots for
broadcasting of any programme or obtaining sponsorships for
programme and collecting broadcasting charges is a taxable
service. [section 65(16)]
|
|
Exemptions
·
Exemption to services by digital cinema service
provider to distributor or producer - Notification No.
12/2007-Service Tax dated 01.03.2007.
·
See
para 12.3 for general exemptions.
|
|
Business auxiliary services
|
Statutory coverage
·
Promotion or
marketing or sale of goods produced or provided by or belonging to
the client
·
Promotion or
marketing of service provided by the client
·
any customer care
service provided on behalf of the client
·
procurement of goods
or services, which are inputs for the client
·
production or
processing of goods for, or on behalf of, the client
·
provision of service
on behalf of the client
·
a service incidental
or auxiliary to any activity specified above, such as billing,
issue or collection or recovery of cheques, payments, maintenance
of accounts and remittance, inventory management, evaluation or
development of prospective customer or vendor, public relation
services, management or supervision.
| services as a commission agent [section 65(19)]
|
Case Law/Board Circulars
·
Job work liable to service tax, but job work done under
Cenvat provisions exempt. Job work not taxable if it amounts to
‘manufacture’.
|
Exclusions
| ‘Information Technology Service’ means any
service in relation to (a) designing or developing of computer
software, or (b) system networking, or (c) any other service
primarily in relation to operation of computer systems, is
excluded.
|
| Activity that amounts to “manufacture”
within the meaning of section 2(f) of the Central Excise Act
is excluded.
|
Exemptions
| The services of production or processing of goods in relation to agriculture,
printing, textile processing or education are fully
exempt [Notification No. 14/2004-ST dated 10-9-2004].
|
| Job work exempt if the goods after processing are returned back
to client (raw material supplier) for use in or in relation to
manufacture of ‘other goods’ by the client. The ‘other
goods’ should be such that appropriate duty should be
payable on such goods - notification No. 8/2005-ST dated
1-3-2005.
|
| Job
workers of parts and accessories of cycles, cycle rickshaws
and hand operated sewing machines have to pay service
tax is payable on 70% of gross amount if gross amount is
inclusive of cost of inputs and input services. The
‘exemption’ is available if job worker does not avail any
Cenvat Credit – Notification No. 1/2006-ST dated 1-3-2006.
|
| Services of commission agents in relation to sale or purchase of
agricultural produce are exempt from service tax vide
notification No. 13/2003-ST dated 20-6-2003.
|
| Job work done in gem, jewellery and diamonds
sector has been exempted vide notification No. 21/2005-ST
dated 7-6-2005.
|
| See para 12.3 for general exemptions
|
|
|
Business exhibition
|
Statutory coverage
·
An
exhibition, — (a) to market; or (b) to promote; or (c) to
advertise; or (d) to showcase, - - - any product or service,
intended for the growth in business of the producer or provider of
such product or service [section 65(19a)]
Case Law/Board Circulars
·
Organizers
of events such as trade fairs, road shows, fashion shows, display
show-cases kept in airports, railway stations, hotels etc. would
be covered under this new levy.
|
Exemptions
·
See
para 12.3 for general exemptions
|
|
Business Support Services
|
Statutory coverage
| Services provided in relation to business or
commerce
|
| Evaluation of prospective customers,
telemarketing, processing of purchase orders and fulfilment
services, information and tracking of delivery schedules,
managing distribution and logistics, customer relationship
management services, accounting and processing of
transactions, operational assistance for marketing,
formulation of customer service and pricing policies
|
| Infrastructural support services
|
| Other transaction processing [section
65(104c)]
|
|
Exemptions
·
See
para 12.3 for general exemptions
|
|
Cable
|
Statutory coverage
| Service provided by cable operator, including
multi-system operator
|
| transmission by cables of a programme
including retransmission by cable of any broadcast television
signals is taxable [section 65(22)].
|
Case Law/Board Circulars
·
Broadcasting
services provided by cable operators are also taxable.
·
Service
tax is not leviable on entertainment tax levied by State
Government, if it is shown separately in the Bill of cable
operator to the customer - CBE&C circular No. B.11/1/2002-TRU
dated 1-8-2002.
|
Exemptions
See
para 12.3 for general exemptions
|
|
Cargo handling
|
Statutory coverage
| Loading, unloading, packing or unpacking of
cargo
|
| Cargo handling services provided for freight
in special containers or for non-containerised freight
|
| Services provided by a container freight
terminal or any other freight terminal, for all modes of
transport
|
| Cargo handling services incidental to freight
[section 65(23)]
|
|
Exclusions
·
Handling of export
cargo or passenger baggage is excluded.
·
Mere transportation
of goods excluded.
Exemptions
| Cargo handling services relating to
agricultural produce or goods intended to be stored in a cold
storage are exempt from service tax vide notification No.
10/2002-ST dated 16-8-2002.
|
| See para 12.3 for general exemptions
|
|
|
Cleaning Activity
|
Statutory coverage
| Cleaning
|
| specialised cleaning services
|
| disinfecting, exterminating or sterilising of
objects or premises, of — (i) commercial or industrial
buildings and premises thereof; or (ii) factory, plant or
machinery, tank or reservoir of such commercial or industrial
buildings and premises [section 65(24b)]
|
|
Exclusions
·
Services in
relation to agriculture, horticulture, animal husbandry or
dairying
| ‘Cleaning’
of goods i.e. movable property will not be taxable under this
head
|
| Cleaning
of residential buildings and premises has been excluded from
the provisions |
Exemptions
·
See
para 12.3 for general exemptions
|
|
Clearing & Forwarding Agent
|
Statutory coverage
| Service, either directly or indirectly,
connected with clearing and forwarding operations
|
| It includes a consignment agent. [section
65(25)]
|
Case Law/Board Circulars
·
Services
of coal merchants, who are acting as buyer’s agents and carry
out such jobs/assignments as asked for by respective
consumers/buyers are covered under definition of C&F Agent and
are liable to service tax - CBE&C letter F No. 159/1/2003-CX.4
dated 10-12-2003
| Mere procuring or booking orders for the
Principal by an agent on commission basis would not be
‘Clearing and forwarding Agent service’ - Larsen
and Toubro Ltd. v. CCE
(2006) 4 STT 231 (CESTAT 3 member bench)
|
| A commission agent is not a ‘C&F’
agent – CCE v. Chandan Chemicals (2007) 9 STT 556 (CESTAT).
|
|
Exemptions
·
See
para 12.3 for general exemptions
|
|
Club or Association’s services
|
Statutory coverage
·
Service
to members, by any club or association in relation to provision of
services, facilities or advantages for a subscription or any other
amount
Case Law/Board Circulars
| As per section 2 of Charitable Endowments Act,
1890, ‘charitable purpose’ includes relief to poor,
education, medical relief and the advancement of any other
object of general public utility, but does not include a
purpose which relates exclusively to religious teaching or
worship.
|
| Service tax will be payable on life membership
fees - para 10.6
of MF(DR) circular No. B1/6/2005-TRU dated 27-7-2005.
|
|
Exclusions
“Club or association”
does not include—
(i)
any body established or constituted by or under any law for
the time being in force; or
(ii)
any person or body of persons engaged in the activities of
trade unions, promotion of agriculture, horticulture or animal
husbandry
(iii)
any person or body of persons engaged in any activity
having objectives which are in the nature of public service and
are of a charitable, religious or political nature
(iv)
any person or body of persons associated with press or
media [section 65(25a)]
Exemptions
·
Exemption
to Services of housing societies or Resident Welfare Associations
to their members are exempt
vide notification No. 8/2007-ST dated 01-03-2007, if the monthly
contribution is less than Rs 3,000.
·
See
para 12.3 for general exemptions
|
