Budget 2011 - Service Tax - Exemptions:

12.1 Notification 26/2010-ST dated 22-6-2010 is being amended by Notification 4/2011- ST and the service tax applicable in respect of „Transport of passengers by air service” is being revised as follows:  

 (a) Domestic (economy) : From Rs.100 to Rs.150  

(b) International (economy) : From Rs.500 to Rs.750  

(c) Domestic (other than economy) : Standard rate of 10%  

12.2 Exemption is being given to services rendered to an exhibitor participating in an exhibition held outside India (Notification No. 5/ST-2011).  

12.3 Exemption from service tax is being provided to „Works contract service‟ when rendered for the construction of residential complexes or completion and finishing services of a new complex under Jawaharlal Nehru Urban Renewable Mission (JNURM) and “Rajiv Awaas Yojana” (Notifications No. 6/ST-2011).  

12.4 Exemption has been given to the taxable service of general insurance when provided under “Rashtriya Swashya Bima Yojna” (Notifications No. 7/ST-2011).  

12.5 Exemption from service tax is being provided to works contract service rendered within a port, or other port or airport in specified areas (Notifications No. 10&11/ST-2011).  

12.6 An exemption of 25% from the taxable value is being provided in respect of services rendered in relation to “transport of coastal goods” and goods transported through “national waterways” or “inland water” (Notification No.16/ST-2011).  

12.7 Exemptions with retrospective effect have been given by the Finance Bill:  

(a) To an association or chamber representing commerce or industry in respect of membership fee under the „Club or Association Service‟ for the period from 16.06.2005 to 31.03.2008; and  

(b) To inter-state or intra-state transportation of passengers, in a vehicle bearing contract carriage and tourist vehicle permit for the period from 01.04.2000 to 06.07.2009  

12.8 These changes will come into effect on the dates mentioned in the respective notifications or when the bill is enacted and notified, as the case may be.