Service Tax Exemptions

Every SP ( service provider ) including central, state government, and private service providers are liable to pay service tax online  except those SP which are listed on the negative list of services. Below are some cases where payment of ST can be avoided.

Following are the Service Tax Exemptions :

  • Registered individual service provider with annual sales of less than Rs. 10 Lakhs is not liable to pay ST.

  • The service users are exempted from paying ST for the goods and services received from the service provider,if the services have been provided under the CENVAT Credit rules and if there is written proof that indicates the value of the goods and materials and no credit of duty is paid on such goods and materials.

  • Services provided for diplomatic missions and to the officers of a diplomatic mission and their family members are exempted from ST payment.

  • Services exported from India are exempted from payment of ST. In such cases, service tax paid by an exporter on various services used is refunded to the exporter.

  • Services provided to international organizations and the United Nations do not come under service tax liable category.

  • Services provided to a developer of Special Economic Zone or a unit of Special Economic Zone are not liable to pay ST.