Following services has been exempted form service tax :

• Services provided by operators of common Bio-medical waste treatment facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto.

• Hitherto service provided to educational institution in respect of auxiliary educational service & renting of immovable property was exempt. Further, auxiliary service was interpreted by many to include most of the services by its very wide term. Henceforth following services would only be exempt:

  • Service provided by educational institution to its students, faculty and staff

  • Service provided to educational institution by way of transportation, catering, security & housekeeping, services relating to admission & examination.

• Transportation of Organic manure, cotton (ginned or baled) by road/ rail.

• Hitherto services provided to Government, a local authority or a Governmental Authority in relation to all the activities entrusted to municipality was exempted. Henceforth, such exemption would only be available in respect of water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation.

• Services of life insurance business provided under schemes of life micro-insurance product as approved by the insurance regulatory and development authority, having maximum amount of cover of fifty thousand rupees.

• Services by way of loading, unloading, packing, storage or warehousing of rice, cotton, ginned or baled.

• Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves

• Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India.

Services for which exemption has been removed:

• Services provided by clinical research organization approved to conduct clinical trails by the Drug Controller General of India in respect of technical testing or analysis of newly developed drugs, including vaccines and herbal remedies, on human participants.

• Air conditioned Taxis/ Carriage.

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