No Service Tax Exemption of Rs. 10 Lakhs
on Rent Paid by Business Entities to Govt Agency
[Service
Tax Notification No. 26 dated 20th May 2016]
Seeks to amend notification No. 25/2012 – ST dated 20.6.2012, so as
clarify the scope of Entry 48 to the said notification that the exemption from
Service Tax to services provided by Government or a local authority to a
business entity with a turnover up to rupees ten lakh in the preceding
financial year, shall not be applicable in case of services specified in
sub-clauses (i),(ii) and (iii) of clause (a) of
section 66D of the Finance Act, 1994 and renting of immovable property.
In
exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994) and sub-section (2A) of section 5A of the
Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act,
1994 (32 of 1994), the Central Government being satisfied that it is necessary
in the public interest so to do, hereby makes the following further amendment
in the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No.25/2012-Service Tax, dated the 20th June, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i) vide number G.S.R. 467 (E), dated the 20th June,
2012, namely:-
In
the said notification, in Entry 48, the following Explanation shall be
inserted, namely:-
“Explanation.- For the purposes of this entry, it is hereby clarified
that the provisions of this entry shall not be applicable to the following
services, namely:-
(a)
services specified in sub-clauses (i),(ii)
and (iii) of clause (a) of section 66D of the Finance Act, 1994;
(b)
services by way of renting of immovable property.”.
[F.
No. 334/8/2016 -TRU]