Erection, Commissioning or installation	Statutory coverage · Erection, commissioning or installation of plant, machinery, equipment or structures, whether prefabricated or otherwise · Installation of— (a) electrical and electronic devices, including wirings or fittings therefor; or (b) plumbing, drain laying or other installations for transport of fluids; or (c) heating, ventilation or air-conditioning including related pipe work, ductwork and sheet metal work; or (d) thermal insulation, sound insulation, fire proofing or water proofing; or (e) lift and escalator, fire escape staircases or travelators; or (f) such other similar services [section 65(39a)] Case Law/Board Circulars Supply of lift and its installation at site. It was held that it is a contract of ‘sale’ and not a ‘works contract’. Skill and labour employed for converting the main components into lift was only incidental - State of Andhra Pradesh v. Kone Elevators (India) Ltd. 2005 (181) ELT 156 (SC 3 member bench). Service tax payable even if excise duty paid on entire value of contract including erection charges – Lincoln Helios (India) Ltd. v. CCE (2006) 3 STT 311  (CESTAT).	Exclusions ·         If Vat/sales tax is payable on goods involved in the contract, the service will be classifiable under ‘works contract’ service tax. Erection of Civil Structure not taxable Valuation Value of erection, commissioning or installation may, at the option of assessee, be taken as 33% of gross amount of contract and service tax will be payable accordingly. The gross amount charged will include value of plant, machinery, equipment, structures, parts and other material sold - Notification No. 1/2006-ST dated 1-3-2006. Exemptions ·         See para 12.3 for general exemptions
Event management	Statutory coverage Service provided in relation to planning, promotion, organising or presentation of any arts, entertainment, business, sports, marriage or any other event Includes any consultation provided in this regard [section 65(40)]	Exclusions ·         Service tax is not leviable on sale proceeds of tickets or revenue generated from the sale of space. - CBE&C circular No. B.11/1/2002-TRU dated 1-8-2002 Exemptions ·         See para 12.3 for general exemptions
Fashion designing	Statutory coverage Any activity relating to conceptualizing, outlining, creating the designs and preparing patterns for costumes, apparels, garments, clothing accessories, jewellery or any other article intended to be worn by human beings Any other service incidental thereto [section 65(43)]	Exclusions ·         If fashion designer designs and makes garments himself and sells them, there is no service tax, as he is providing designing service to himself. - - Services of tailor and jewellers are not taxable, as no designing is involved. - - - CBE&C circular No. B.11/1/2002-TRU dated 1-8-2002 Exemptions ·         See para 12.3 for general exemptions
Forward contract	Statutory coverage Service by a member of a recognized association or a registered association, in relation to a forward contract. “Forward contract” means the contract for delivery of goods at future date and which is not for ready delivery contract.	Exemptions See para 12.3 for general exemptions
Franchise	Statutory coverage ·         “Franchise” means an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trademark, service mark, trade name or logo or any such symbol, as the case may be, is involved [section 65(47)] Case Law/Board Circulars Some well known examples of franchise are - Coca-Cola, Pepsi, NIIT, Aptech, McDonald etc. If vocational training is provided through franchisee, the service will be taxable under ‘franchisee service’ - Jetking Information Ltd. v. CCE (2007) 6 STT 444  (CESTAT)	Exemptions See para 12.3 for general exemptions
General insurance	Statutory coverage ·         Services by an insurer, including re-insurer, in relation to general insurance business. Case Law/Board Circulars ·         No service tax if assets are in J&K - – DGST instruction No. V/DGST/03/GEN/INS/01/2004 dated 17-8-2004	Exemptions Certain schemes like personal accident social security scheme, crop insurance, cattle insurance, janata policy, export credit insurance, insurance on export of goods from India are exempt - Notification No. 3/1994-ST dated 30-6-1994. Jana Arogya Bima policy is exempt from service tax - Notification No. 12/1997-ST dated 14-2-1997. Group personal accident policy for self employed women is exempt under notification No. 3/1994-ST dated 30-6-1994. Scheme of Rajasthan Government is exempt under notification No. 1/2000-ST dated 9-2-2000. (a) Cattle insurance services are exempt. - Notification No. 4/2000-ST dated 31-7-2000 (b) National Agricultural Insurance Scheme, Seed Crop Insurance, Farm Income Insurance Scheme are exempt from service tax - Notification No. 3/2000-ST dated 6-7-2000 (c) Insurance of sheep is exempt upto 31-12-2009 – Notification No. 31/2006-ST dated 11-12-2006. General Insurance Business service provided under Universal Health Insurance Scheme is exempt from service tax - Notification No. 16/2003-ST dated 11-7-2003. See para 12.3 for general exemptions
Health and fitness	Statutory coverage ·         Service for physical well being such as, sauna and steam bath, turkish bath, solarium, spas, reducing or slimming saloons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service [section 65(51)]	Exclusions ·         Institutions conducting diploma courses in yoga and research centers do not fall in the category of health club and will not be liable to service tax. - CBE&C circular No. B.11/1/2002-TRU dated 1-8-2002 Exemptions ·         See para 12.3 for general exemptions
Insurance Auxiliary (General insurance)	Statutory coverage ·         Service to a policy holder or any person or insurer, including re-insurer, by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning general insurance business. ·         Risk assessment, claim settlement, survey and loss assessment [section 65(55)] Reverse charge - Person liable to pay service tax In respect of services provided by an insurance agent, the insurance company is the ‘person liable for paying the service tax’. [section 68(2) of Finance Act, 1994 read with rule 2(1)(d)(iii) of Service Tax Rules, 1994]. The service tax is payable on commission payable to the insurance agent. However, the exemption available to small service providers cannot be availed by insurance agent.	Exemptions See para 12.3 for general exemptions
Insurance Auxiliary (Relating to life insurance)	Statutory coverage Service to a policy holder or any person or insurer, including re-insurer, by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning life insurance business Risk assessment, claim settlement, survey and loss assessment [section 65(55)] Reverse charge - Person liable to pay service tax In respect of services provided by an insurance agent, the insurance company is the ‘person liable for paying the service tax’. [section 68(2) of Finance Act, 1994 read with rule 2(1)(d)(iii) of Service Tax Rules, 1994]. The service tax is payable on commission payable to the insurance agent. However, the exemption available to small service providers cannot be availed by insurance agent.	Exemptions ·         See para 12.3 for general exemptions
Intellectual property	Statutory coverage Transferring temporarily; or permitting the use or enjoyment of, any intellectual property right is taxable [section 65(55b)] “intellectual property right” means any right to intangible property, namely, trademarks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright [section 65(55a)]	Exclusions ·         Copyright service is excluded. Permanent transfer of Intellectual Property not taxable Exemptions Cess is payable under section 3 of Research and Development Cess Act, 1986, on transfer of technology. If such cess is payable, the holder of intellectual property right will be granted exemption from service tax to the extent of cess paid. - Notification No. 17/2004-ST dated 10-9-2004. Thus, if value of service is Rs 100, tax payable is Rs 12 and cess paid is Rs 5, net service tax actually payable will be Rs 7. See para 12.3 for general exemptions
Interior decorator	Statutory coverage Planning, design or beautification of spaces, whether manmade or otherwise, in any manner Advice, consultancy, technical assistance or in any other manner, services relating to planning, design or beautification of spaces Landscape designer [section 65(59)] Case Law/Board Circulars Services of vastu/Feng shui consultants are taxable No tax on material, furniture, and temporary structures	Exemptions ·         See para 12.3 for general exemptions
Internet cafe	Statutory coverage ·         Facility for accessing internet	Exemptions ·         See para 12.3 for general exemptions
Internet telephony service	Statutory coverage ·         Telecommunication service through internet and includes fax, audio conferencing and video conferencing [section 65(57a)]	Exemptions ·         See para 12.3 for general exemptions
Life insurance	Statutory coverage ·         Service in relation to risk cover in life insurance. Case Law/Board Circulars ·         Service tax is payable on gross amount charged in respect of risk portion of insurance premium.	Valuation As per rule 6(7A), the insurance company will have option to pay tax at flat rate of 1% of the gross premium without showing any break-up. If policy is purely risk coverage, then service tax will be at full rate on the gross premium. Exemptions ·         See para 12.3 for general exemptions
Mailing list compilation and mailing	Statutory coverage ·         Service in relation to— (i) compiling and providing list of name, address and any other information from any source; or (ii) sending document, information, goods or any other material in a packet, by whatever name called, by addressing, stuffing, sealing, metering or mailing; for, or on behalf of the client [section 65(63a)]	Exemptions ·         See para 12.3 for general exemptions
Management, Maintenance or repair	Statutory coverage Any service provided by— (i) any person under a contract or an agreement; or (ii) a manufacturer or any person authorised by him, - - in relation to, — (a) management of properties, whether immovable or not (b) maintenance or repair of properties whether immovable or not; or (c) maintenance or repair including reconditioning or restoration, or servicing of any goods or equipment, excluding motor vehicle “Goods” includes computer software [section 65(64)] Case Law/Board Circulars ·         Services relating to maintenance or management of immovable property (such as roads, airports, railways, buildings, parks, electrical installations and the like) have been covered under the purview of service tax - para 16.2 of MF(DR) circular No. B1/6/2005-TRU dated 27-7-2005 Services provided during the warranty period by the dealer or any other authorized person is taxable - CBE&C circular No. 59/8/2003 dated 20-6-2003. Software maintenance is taxable. AMC contracts taxable.	Exclusions ·         Services to motor vehicles not taxable under this head [section 65(64)] Exemptions ·         See para 12.3 for general exemptions
Management or Business Consultant	Statutory coverage Service  in connection with the management of any organisation or business in any manner Advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management [section 65(65)]	Exclusions ·         Executory services would not fall under ‘consultancy services’ - Glaxo Smithkline Pharmaceuticals v. CCE (2005) 1 STT 37 (CESTAT) – quoted with approval in  Glaxo Smithkline Consumer Healthcare v. CCE (2007) 9 STT 496 (CESTAT). Exemptions ·         See para 12.3 for general exemptions
Mandap keeper	Statutory coverage “mandap” means any immovable property and includes any furniture, fixtures, light fittings and floor coverings therein let out for consideration for organising any official, social or business function [section 65(66)] Social function includes marriage [section 65(67)] Service provided as a caterer are included [section 65(105)(m)] Case Law/Board Circulars ·         Services of hotel or restaurant will be taxable if it provides ‘mandap’ services. – view confirmed in Rajmalal Hotel v. CCE (2007) 6 STT 11 (CESTAT).	Exclusions In Social Service League v. CCE (2006) 4 STT 283  (CESTAT), it has been held that drama performances conducted in a hall or mandap will not come under mandap keeper services. In a contrary view, in ADA Rangamandira Trust v. CCE (2007) 8 STT 206 (CESTAT), it was held that drama, music and dance should be held as social functions. Exemptions If the mandap keeper provides catering services also and if his bill indicates that his bill is inclusive of charges for catering services, he has to pay service tax only on 60% of his gross charges to client. Catering service means supply of food - Notification No. 1/2006-ST dated 1-3-2006. Use of precincts of a religious place as mandap is exempted from service tax - notification No. 14/2003-ST dated 20-6-2003, See para 12.3 for general exemptions
Manpower recruitment or supply agency	Statutory coverage Recruitment or supply of manpower, temporarily or otherwise, in any manner Services in relation to pre-recruitment screening, verification of the credentials and antecedents of the candidate and authenticity of documents submitted by the candidate. Case Law/Board Circulars Academic/educational institutes providing recruitment services are taxable - Ref Code 010.01/23.8.07 of CBE&C Circular No. 96/7/2007-ST dated 23-8-2007. Services of labour contractors are taxable w.e.f. 16-6-2005. Service of providing employees of Agency to business or industrial organizations for a specific period is taxable - Ref Code 010.02/23.8.07 of CBE&C Circular No. 96/7/2007-ST dated 23-8-2007.	Exemptions See para 12.3 for general exemptions. Valuation Service tax is to be charged on the full amount of consideration for the supply of manpower, whether full-time or part-time. The value includes recovery of staff costs from the recipient e.g. salary and other contributions. Even if the arrangement does not involve the recipient paying these staff costs to the supplier (because the salary is paid directly to the individual or the contributions are paid to the respective authority) these amounts are still part of the consideration and hence form part of the gross amount  - per MF(DR) circular No. B1/6/2005-TRU dated 27-7-2005 para 22.4 (It is difficult to agree with this view. However, if the principal employer is in a position to avail Cenvat credit, it may be advisable to pay service tax on entire amount, instead of entering into fruitless and costly litigation).
Market research agency	Statutory coverage ·         Market research in any manner, in relation to any product, service or utility, including all types of customised and syndicated research services [section 65(69)]	Exemptions ·         See para 12.3 for general exemptions
Mining of mineral, oil or gas services	Statutory coverage ·         Service in relation to mining of mineral, oil or gas.	Exemptions ·         See para 12.3 for general exemptions
On-line information and data base access or retrieval (Computer network)	Statutory coverage On-line information and database access or retrieval or both in electronic form through computer network Providing data or information, retrievable or otherwise, to a customer, in electronic form through a computer network [section 65(75)] Case Law/Board Circulars Following would be covered - (a) Internet Service Providers (ISP) (b) On line information provision and retrieval services like paid websites.  However, e-commerce transactions are not covered as they do not charge surfers. - CBE&C letter No. B.II/I/2000-TRU dated 9-7-2001. Providing matrimonial services on website is taxable – prima facie view in Bharat Matrimony.com Pvt. Ltd. v. CST (2007) 6 STT 85  (CESTAT)	Exemptions ·         See para 12.3 for general exemptions
Opinion poll	Statutory coverage ·         Service designed to secure information on public opinion regarding social, economic, political or other issues [section 65(75a)]	Exemptions See para 12.3 for general exemptions
Outdoor Caterer	Statutory coverage Services in connection with catering at a place other than his own, but including a place provided by way of tenancy or otherwise by the person receiving such services [section 65(76a)] “Caterer” means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion [section 65(24)] Case Law/Board Circulars Supply of food to airlines for in-flight service to passengers is taxable - Saj Flight Services v. Superintendent of CE (2006) 3 STT 165  (Ker HC)  – confirmed in Saj Flight Services v. Superintendent of CE (2006) 5 STT 266 (Ker HC DB) In case of canteen in office or factory run by canteen contractor, if the service is received by the employer, it will be taxable. If the service is directly provided to employees/workmen, then the canteen should not come within the definition.	Exclusions