Rebate of Swachh Bharat Cess paid on all services

Seeks to amend notification No. 39/2012- ST, dated the 20th June, 2012 so as to provide for rebate of Swachh Bharat Cess paid on all services, used in providing services exported in terms of rule 6A of the Service Tax Rules.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION(i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 03/2016-Service Tax

New Delhi, the Dated- 3^rd February, 2016

G.S.R.….(E).– In exercise of the powers conferred by rule 6A of the Service Tax Rules, 1994, the Central Government, hereby makes following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 39/2012 – Service Tax, dated the 20^th June, 2012, published in the Gazette of India, Extraordinary, vide number G.S.R. 481(E), dated the 20^th June, 2012, namely:-

In the said notification, in Explanation 1, after clause (c), the following clause shall be inserted, namely:-

(d) Swachh Bharat Cess as levied under sub-section (2) of section 119 of the Finance Act, 2015 (20 of 2015).

[F. No. 332/18/2015-TRU ]

(K. Kalimuthu)
Under Secretary to the Government of India

Note: The principal notification was published in the gazette of India, Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification No. 39/2012 – Service Tax, dated the 20^th June, 2012 vide number G.S.R. 481(E), dated the 20^th June, 2012.

Income from temporary letting of Property

Citation of the Case:- G.R. Commercial Pvt. Ltd. vs. ITO (Individual) (ITAT Delhi), Income Tax (Appeal) Nos. ITA No.273/Del/2013 and ITA No.1134/Del/2013, AY 2005-06 and 2006-07, Date of Judgment: 30/04/2015

Brief of the Case

ITAT Delhi held In the case of G.R. Commercial Pvt. Ltd. vs. ITO that the Supreme Court in the case of Chennai Properties and Investments Ltd. vs CIT (2015) 373 ITR 673 (SC) after considering all previous judgments of Supreme Court, held that where the main object of the assessee company is to acquire and hold properties and to let out those properties, then the rental income had to be treated as income from business and not as income from house property. In the present case, the assessee company was formed with the main object of property business and earning income from property transactions in the form of commission and profits etc. and letting out the shop was not main objects of the assessee company. The shop was let out in the third year of business operations temporarily when the assessee company could not earn income from its main object in spite of their best efforts. Hence, income will be taxable under income from house property.

Facts of the Case

The assessee filed E-return on 30.11.2006 declaring an income of Rs.2,45,851/- for AY 2006-07. Subsequently a paper return was also filed on 8.12.2006 after setting off of brought forward business loss of Rs.7,67,190. The assessee has shown income from its property located at sector 18, Noida under the head of “profit and gains of business and profession” but the AO treated the same as “income from house

property”. The AO finalized the assessment by treating the receipts of rent as income from house property and after allowing 30% for repair and maintenance along with audit and filing fee, the assessment was framed at net taxable income of Rs. 13,67,361. The AO disallowed all other expenses.

Contention of the Assessee

The ld counsel of the assessee submitted that the AO treated rental receipts of the company as income from house property only on the sole basis of a letter dated 22.8.2008 which was not filed on the instructions of the assessee and the AO did not consider the treatment given by the assessee and accepted by the revenue in earlier assessment yeas and other relevant facts. He further contended that the CIT (A) rejected additional evidence of the assessee and upheld the conclusion of the AO only on the basis of wrong observations of the AO which were not sustainable in law and on the facts of the case.

The ld. counsel of the assessee placed rejoinder to the contentions of the ld. DR and submitted that when objects of the company include activities of letting properties and exploiting income there from, then the AO cannot treat the rental income as income from house property especially when the revenue had already accepted the same as business income during earlier AY from 2001-02 to 2004-05 and subsequent assessment years 2007-08 and 2011-12. Ld. counsel has placed reliance on the following judgments of Hon’ble Supreme Court and Hon’ble Gujarat High Court:- Commissioner of income Tax Vs. Calcutta National Bank [1959], 37 ITR 171 (SC) , Universal Plast Vs Commissioner of Income Tax [1999] 103 Taxman 493 (SC) and Commissioner of Income Tax vs. New India Ind. Ltd.[1993] 201 ITR 208 (Gujarat).

Contention of the Revenue

The ld counsel of the revenue submitted that the AO had no option but to accept the admission letter of the assessee which was filed on 22.8.2008 and the CIT(A) had no alternative except to go with the conclusion of the AO which was supported by the assessee’s letter accepting the stand and action of the AO. However, the ld. DR fairly accepted that the lower authorities did not consider the other relevant facts and circumstances while adjudicating this issue. The ld. DR placed reliance on the judgment of Hon’ble Supreme Court in the case of Rajasthan Warehousing Corp. (2000) 242 ITR 450 (SC), S.G. Mercantle Corpn. Ltd. vs CIT (1972) ITR 700 (SC), East India Housing & Land Dev. Trust vs CIT (1961) 42 ITR 49 (SC) and the order of the Special Bench of ITAT Delhi in Atma Ram Properties Pvt. Ltd. vs JCIT (2006) 102TTJ (SB) (Del) 345.

Held by ITAT

ITAT held that it is clear that the assessee company was formed with the main object of earning commission income from property transactions and it has earned commission income of Rs.66,710 in AY 2001-02, the first year of business. Subsequently, in AY 2002-03, there was neither any business income nor any rental income for the assessee company. Subsequently, in AY 2003-04 and 2004-05, the gross rental income was Rs.90,000 and Rs.9,50,600 respectively and there was no business income from commission. In the AY 2005-06, there was rental income of Rs.17,88,000 and there was no commission income during this period. In the year under consideration i.e. AY 2006-07, the assessee earned gross rental income of Rs.19,75,500 and there was no business income during this period. From above, it is clear that the assessee company earned commission income from property transaction of Rs.66,710 only in AY 2001-02 and in the subsequent AY from 2002-03 to 2006-07, there was no business income either from commission of property transaction or from any other business activity.

Further we are of the view that the principle of consistency cannot be applied to the assessment order which was passed u/s 143(1) of the Act because under this provision, the assessment is framed in a mechanical manner by accepting the return of income filed by the assessee without taking any view on a particular issue or treatment of income under a specific head. Hence, application of principle of consistency cannot be pressed in the present case.

Hon’ble Supreme Court in the case of Chennai Properties and Investments Ltd. vs CIT (2015) 373 ITR 673 (SC) wherein after considering all previous judgments of Hon’ble Supreme Court including dicta of the judgments of Hon’ble Apex Court in the case of East India Housing and Land Development Trust Ltd. vs CIT (1961) 42 ITR 49(SC), decision of Hon’ble constitutional bench to Supreme Court in the case of Sultan Brothers (P) Ltd. vs CIT (1964) 51 ITR 353 (SC) and also ratio of the decision of Hon’ble Supreme Court in the case of Karanpura Development Co. Ltd. vs CIT (1962) 44 ITR 362 (SC) held that letting of property, in fact was the main business of the assessee and, therefore, the assessee rationally disclosed the rental income under the head of income from business and the same cannot be treated as income from house property. In this case, Supreme Court has provided a clear proposition that where the main object of the assessee company is to acquire and hold properties and to let out those properties, then the rental income had to be treated as income from business and not as income from house property.

In the case in hand, the main object of the present assessee company was not to earn rental income from letting of property which was purchased in FY 2001-02 and let out in FY 2002- 03 temporarily till the company gets sufficient profits from its main business activity with cautious decision of Board of Directors of the company with the intention to reduce burden of expenditure and losses suffered by the assessee company right from its incorporation during preceding three years.

Further in the judgment of Sultan Brothers (1964) 51 ITR 353 (SC), the Hon’ble apex court categorically held that merely an entry in the object clause showing a particular object would not be the determinative factor to arrive at a conclusion whether the income is to be treated as income from business and such a question would depend upon the circumstances of each case.

The present case clearly falls on all four corners within the dicta of the constitutional bench of Hon’ble apex court in the case of Sultan Brothers Ltd. vs CIT, as the assessee company let out the shop situated at Sector 18, Noida not as per main objects of the assessee company and the same was let out in the third year of business operations temporarily when the assessee company could not earn income from its main object in spite of their best efforts. At this juncture, the ratio of the decision of Hon’ble Special Bench, ITAT, Delhi in the case of Atma Ram Properties (P) Ltd. (2006) 102TTJ (SB) (Del) 345 also supports the case of the revenue wherein it was held that rental income derived by assessee company of letting out property simplicitor was chargeable to tax under the head income from house property and not as business income irrespective of the fact that the assessee company was doing business of acquiring, developing and selling properties because the rental income accrued to the assessee company only because of ownership of the property and not by exploitation of rented property by way of complex commercial activity. We uphold the view taken by AO and upheld by CIT (A).

Rebate/refund of SB Cess on exports & services used in SEZ

The Central Government (CG) has issued various Notifications under the Service tax and the Central Excise for extending the benefit of refund/rebate to the Swachh Bharat Cess (SB Cess) component and the input services used beyond factory for export. Further, the Cenvat Credit Rules, 2004 (the Credit Rules) has been amended to allow Cenvat credit on commission agent’s services and to make explicit that Cenvat credit shall not be used for payment of SB Cess.

Gist of all the Notifications is discussed hereunder for easy digest:

Rebate of Service tax on services used beyond the factory or any other place/premises of production/manufacture of goods, for their export 

The CG vide Notification No. 01/2016-Service Tax dated February 3, 2016 (“Notification No. 1”) has amended Notification No. 41/2012-Service Tax dated June 29, 2012 (Rebate of Service tax paid on the taxable services which are received by an exporter of goods and used for export of goods) [“Notification No. 41”] to include the taxable services that have been used beyond factory or any other place or premises of production or manufacture of the goods, for their export, in the case of excisable goods, under the definition of ‘specified services’. Further, clause (B) of Notification No. 41 prescribing definition of ‘place of removal’ as the one defined under Section 4(3)(c) of the Central Excise Act, 1944, has also been deleted.

Increase in the rate of refund commensurate to the increased Service tax rate

The CG vide Notification No. 1 has further amended Notification No. 41 to increase the rate of refund commensurate to the increased Service tax rate in the following manner:

“(b) in the Schedule of rates, in column (4),-

(i) for the figures 0.04, wherever they occur, the figures 0.05 shall be substituted;

(ii) for the figures 0.06, wherever they occur, the figures 0.07 shall be substituted;

(iii) for the figures 0.08, wherever they occur, the figures0.09 shall be substituted;

(iv) for the figures 0.12, wherever they occur, the figures 0.14 shall be substituted;

(v) for the figures 0.18, wherever they occur, the figures 0.21 shall be substituted; and

(vi) for the figures 0.20, wherever they occur, the figures 0.23 shall be substituted”

Refund of SB Cess paid on specified services used in Special Economic Zone (“SEZ”)

The CG vide Notification No. 02/2016-Service Tax dated February 2, 2016 (“Notification No. 2”) has amended Notification No. 12/2013-Service Tax dated July 1, 2013 (Exemption on services received by units located in a SEZ or Developer of SEZ and used for the authorised operation) to enable the SEZ Unit or the Developer for refund of the SB Cess paid on the specified services on which ab-initio exemption is admissible but not claimed.

Further, the refund of amount distributed to the SEZ Unit or the Developer in the manner as prescribed in Rule 7 of the Credit Rules, will be determined as under:

=        Amount distributed to the SEZ Unit or the Developer in the manner as prescribed in Rule 7 of the Credit Rules X effective rate of SB Cess

Rate of Service tax specified in Section 66B of the Finance Act, 1994

Rebate of SB Cess paid on all the input services used in providing services exported

The CG vide Notification No. 03/2016-Service Tax dated February 3, 2016 (“Notification No. 3”) has amended Notification No. 39/2012-Service Tax dated June 20, 2012 (Rebate of the duty paid on excisable inputs or Service tax and cess paid on all input services used in providing service exported) to insert SB Cess under the definition of ‘service tax and cess’, to enable the provider of services to claim rebate of SB Cess paid on all the input services used in providing services exported in terms of Rule 6A of the Service Tax Rules, 1994.

Cenvat credit shall not be used for payment of SB Cess

The CG vide Notification 02/2016-CE(NT) dated February 3, 2016 (“Excise Notification No. 2”), has amended Rule 3(4) of the Credit Rules, to insert a proviso providing that Cenvat credit shall not be used for payment of SB Cess.

It may also be noted here that the Central Board of Excise and Customs in their Frequently Asked Questions released on November 14, 2015 on SB Cess, had specifically provided that because SB Cess is not integrated in the Cenvat credit chain, its credit is not admissible:

“Q.14 Whether Cenvat Credit of the SBC is available?

Ans. SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax”

Cenvat credit admissible on services of sales commission agent

The CG vide Excise Notification No. 2 has further amended the definition of ‘input services’ under Rule 2(l) of the Credit Rules, to allow Cenvat credit of Service tax paid on sale of dutiable goods on commission basis, by inserting following explanation after sub-clause (C):

“Explanation.-For the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis.”

It may not be out of place here to mention that in view of the conflicting judgments, eligibility to avail Cenvat credit of the services rendered by a commission agent has been a subjective issue. The Hon’ble High Court of Gujarat in the case of Commissioner of C. Ex., Ahmedabad-II Vs. Cadila Healthcare Ltd. [2013 (30) S.T.R. 3 (Guj.)], has disallowed Cenvat credit on commission agent’s services whereas, the Hon’ble Punjab & Haryana High Court in the case of Commissioner of Central Excise, Ludhiana Vs. Ambika Overseas [2012 (25) S.T.R. 348) had allowed the Cenvat credit. Thus, with the insertion of stated explanation, it may be contended by the assessees that because the same is clarificatory which was being disputed on the basis of divergent judgments, therefore, it would have retrospective effect.

Service Tax on Services by Government or local authority

Services by Government or a local authority excluding the following services to the extent they are not covered elsewhere—Section 66D

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers; or

(iv) ^[*][any service], other than services covered under clauses (i) to (iii) above, provided to business entities;

[*] Substituted by the Finance Act, 2015 w.e.f. 14.05.2015, Earlier it read as under: “support services”

With effect from 14.05.2015    

“Government” means the Departments of the Central Government, a State Government and its Departments and a union territory and its departments but shall not be include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made theirunder

“Local Authority” means-

(a)   a Panchayat as referred to in clause (d) of article 243 of the Constitution;

(b)   a Municipality as referred to in clause (e) of article 243P of the Constitution;

(c)     a Municipal Committee and a District Board, legally entitled to, or entrusted by the Government With, the control or management of a municipal or local fund;

(d)   a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006);

(e)   a regional council or a district council constituted under the Sixth Schedule to the Constitution;

(f)     a development board constituted under article 371 of the Constitution; or

(g)   a regional council constituted under article 371A of the Constitution;

Departmental   Clarifications      

(A)    D.O.F. No. 334/5/2015-TRU, Dated 28.02.2015

5.1 (iii) Presently, services provided by a Government or a local authority, excluding certain services specified under clause (a) of section 66D , are covered by the Negative List. Service Tax applies on the “support services” provided by the Government or local authority to a business entity . An enabling provision is being made, by amending section 66D to exclude all services provided by the Government or local authority to the business entity from the Negative List. Consequently , the definition of “support service” [ section 65B(49)] is being omitted. Accordingly, as and when this amendment is given effect to, all services provided by the Government or local authority to a business entity, except the services that are specifically exempted , or covered by any another entry in the Negative List, shall be liable to service tax.

(B) D.O.F. No. 334/5/2015-TRU, Dated 19.05.2015

3. Presently, services provided by Government or a local authority, excluding certain services specified under clause (a) of section 66D , are covered in the Negative List. An enabling provision has been made, by an amending section 66D(a)(iv) , to exclude all service provided by the Government or local authority to the business entity from the Negative List [section 109(1) of Finance Act, 2015] . Consequently, the definition of “support service” [section 65B (49)] is also to be omitted from 14.05.2015 [ section 107(h) of Finance Act ,2015].

Person responsible for discharge of Service Tax Liability in respect of above specified Services

Relevant Service	Person responsible for discharge of Service Tax
Specified services provided by Derpartment of Posts	Department of Posts
Services in relation to vessel	Concerned Government Department.   For instance, Port Authorities
Services in relation to an Aircraft	Concerned Government Department.   For instance, Airport Authority of India
Transport of Goods and/or passengers.	Concerned Government Department.   For instance, Indian Railways , Delhi Transport Corporation.
Any Service [ other than those covered by clauses (i) to (iii) to above] to business entities.	The Concern business entity by virtue of Reverse Charge Mechanism given under section 68(2) of the Act read with clause 6 of Notification No. 30/2012-S.T. dated 20.06.2012

 Departmental clarification-Taxation of services- An Education Guide, Dated 20.06.2012

4.1.1 Are All Services provided by the Government or Local Authority Covered in the negative list?

No. Most services provided by the central or state Government or local authorities are in the negative list except the following:

(a) Services provided by the department of posts by way of speed post, express parcel post, life insurance and agency services carried out on payment of commission on non-Government business;

(b) Services in relation to a vessel or an aircraft inside or outside the precincts of a port or an airport;

(c) Transport of goods and/or passengers ;

(d)   Support Services, other than those covered by clause (a) to (c) above , to business entities

4.1.2 Would the taxable services provided by the Government be charged to tax if they are otherwise exempt or specified elsewhere in the negative list?

No. If the services provided by the Government or local authorities that have been excluded from the negative list entry are otherwise specified in the negative list then such services would also not be taxable.

4.1.3 ‘Government’ has not been defined in the Act. What is the meaning of Government?

The Phrase ‘Government’ has not been defined in the Act. As per clause (23) of section 3 of the General Clauses Act, 1897 ‘Government’ include both Central Government and any state Government As per clause (8) of section 3 of the said Act ‘Central Government’, in relation to anything done or to be done after the commencement of the constitution , mean the President. As per article 53 of the constitution the executive power of the Union shall be vested in the President and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further in term of article 77 of the Constitution all executive actions of the Government of India shall be expressed to be taken in the name of the President. Therefore , the Central Government means the President and the officers subordinate to him while exercising the executive powers of the union vested in the President and in the name of the President.

Similarly as per clause (60) of section 3 of the General Clauses Act, 1897 ‘State Government’, as respects anything done after the commencement of the Constitution, shall have been, in a State the Governor, and in Union Territory the Central Government Further as per article 154 of the Constitution the executive power of the state shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, as per article 166 of the Constitution all executive actions of the Government of state shall be expressed to be taken in the name of Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive power of the state vested in the Governor and in the name of Governor.

4.1.4 Are various corporations formed under Central Acts or State Acts or various Government companies registered under the Companies Act, 1956 or autonomous institutions set up by a special Acts covered under the definition of   ‘Government’ ?

No. A statutory body, corporation or an authority created by the Parliament or a State Legislature is neither ‘Government’ nor a ‘Local Authority’ as would be evident from the meaning of these terms explained in point nos. 2.4.7 and 2.4.8 above respectively. Such Statutory body, corporation or an Authority are normally created by the Parliament or a state Legislature in exercise of the powers conferred under article 53(3)(b) and article 154(2)(b) of the Constitution respectively . It is a settled Position of law Government (Agarwal Vs Hindustan Steel AIR 1970 Supreme Court 1150) that the manpower of such statutory authorities or bodies does not become officers subordinate to the president under article 53(1) of the Constitution . Such a Statutory Body, corporation or an authority as a juristic entity is separate from the state and cannot be regarded as central or state Government and also do not fall in the definition of ‘Local Authority’.

Thus regulatory bodies and other autonomous entities which attain their entity under an act would not comprise either Government or Local Authority.

4.1.5 What entities are then covered under ‘Government’?

‘Government’ would include various departments and offices of the Central or State Government or the U.T. Administrations which carry out their functions in the name and by order of the President of India or the Governor of a State.

4.1.6   Would a department of the Government need to get itself registered for each of the services listed in answer to Q. No. 4.1.1 above?

For the Support services provided by the Government, other than where such support services are by way of renting of immovable property , to business entities, Government departments will not have to get registered because service tax will be payable on such services by the service receiver i.e. the business entity receiving the service under reverse charge mechanism in terms of the provisions of section 68 of the Act and the notification issued under the said section as well Service Tax Rules, 1994. For Services mentioned at (a) to (c) of the list (point 4.1.1 above refers) tax will be payable by the concerned department Conditions of Service) Act, 1971 (such services are performed by CAG under the statue and cannot be performed by the business entity themselves and thus do not constitute support services.)

4.1.8 Will the services provided by Police or security agencies to PSUs or corporate entities or sports events held by private entities be taxable?

Yes. Services provided by Government security agencies are covered by the main portion of the definition of support service as similar services can be provided by private entities. In any case it is also covered by the inclusive portion of the definition. However the tax will be actually payable on reverse charge by the recipient.

4.1.9   What is the meaning of Local Authority?

Local Authority is defined in clause (31) of section 65B and means the following:-

(i)   A Panchayat as referred to in clause (d) of article 243 of the Constitution

(ii)   A Municipality as referred to in clause (e) of article 243P of the Constitution

(iii) A Municipal committee and a District Board , legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund

(iv) A Cantonment Board as defined in section 3 of the Cantonment Act ,2006

(v)   A regional Council or a district council constituted under the sixth Schedule to the Constitution

(vi)   A development board constituted under article 371 of the Constitution , or

(vii) A regional council constituted under article 371A of the constitution

4.1.10   Are all local bodies constituted by a state or central law are local authorities?

No. The definition of ‘Local Authority’ is very specific as explained above and only those bodies which fall in the definition comprise ‘local authorities’. It would not include other bodies which are merely described as a local body by virtue of a local law.

However it may be noted that services by a Governmental Authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the constitution are specifically exempt under the mega exemption. ‘Government Authority’ has been defined in the said mega exemption as a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a state Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution. Thus some of these local bodies may comprise Governmental authorities

Author’s Note: The definition of term ‘Government Authority’ has been amended with effect from 30.01.2014 vide Notification No. 02/2014-ST dated 30.01.2014.

4.1.11 Department of Posts provides a number of services. What is the status of those services for the purpose of levy of service tax?

As per sub-clause (i) of clause (a) of section 66D services provided by the department of posts by way of speed post, express parcel post , life insurance, and agency services carried out on payment of commission on non-Government business are excluded from the negative list. Therefore , the following services provided by department of Posts are not liable to service tax.

Basic mail services known as postal services such as post card , inland letter, book post, registered post provided exclusively by the Department of Posts to meet the universal postal obligations.

Transfer of money through money orders , operations of savings accounts issue of postal orders, pension payments and other such services

4.1.12 Would agency or intermediary services on commission basis (distribution of mutual funds, bonds, passport applications, collection of telephone and electricity bills), which are provided by the Department of Posts to non-Government entities be liable to service tax?

Yes. Agency services carried out on payment of commission on non-Government business are excluded from the negative list entry relating to services provided by Government or a Local Authority”

RELATED EXEMPTIONS IN NOTIFICATION NO. 25/2012 

1. Entry No. 12 of Notification No. 25/2012-ST, Dated 20.06.2012 (As amended by Notification No. 06/2015-ST, Dated 01.03.2015)

With effect from 01.04.2015

Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation , completion, fitting out , repairing , maintenance, renovation or alteration, of –

(a) omitted;

(b)   a historical monument , archaeological site or remains of national importance , archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958(24 of 1958);

(c)   omitted;

(d)   canal, dam or other irrigation works;

(e)   pipeline, conduit or plant for (i) water supply (ii) water treatment , or (iii) sewerage treatment or disposal ; or

(f) omitted

2. Entry 25 of Notification No. 25/2012-ST, Dated 20.06.2012 (Amended by Notification No. 03/2013-ST, Dated 01.03.2013 and Notification No. 6/2014-ST, Dated 11.07.2014

With effect from 11.07.2014

Services provided to Government, a local authority or a governmental authority by way of –

(a)   water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation; or

(b) repair or maintenance of a vessel

3. Entry 34(a) of Notification No. 25/2012-ST, Dated 20.06.2012

provide exemption from levy of service tax to Services received from a service provider located in a non-taxable territory by the Government, a Local Authority , a Governmental Authority or an individual in relation to any purpose other than commerce , industry or any other business or profession.

4. Entry 39 of Notification No. 25/2012-ST, Dated 20.06.2012

provides exemption from levy of service tax to Services by a Government Authority by way of any activity in relation to any function entrusted to a municipality under Article 243W of the Constitution.

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