[TOBEPUBLISHEDINTHEGAZZETEOFINDIA,EXTRAORDINARY,PARTII,SECTION3,

SUBSECTION(i)]

GovernmentofIndia
MinistryofFinance
(DepartmentofRevenue)
NotificationNo.25/2012ServiceTax
NewDelhi,the20thJune,2012
G.S.R(E).Inexerciseofthepowersconferredbysubsection(1)ofsection93ofthe
FinanceAct,1994(32of1994)(hereinafterreferredtoasthesaidAct)andinsupersessionof
notificationnumber12/2012ServiceTax,datedthe17thMarch,2012,publishedintheGazette
ofIndia,Extraordinary,PartII,Section3,Subsection(i)videnumberG.S.R.210(E),datedthe
17th March, 2012, the Central Government, being satisfied that it is necessary in the public
interestsotodo,herebyexemptsthefollowingtaxableservicesfromthewholeoftheservicetax
leviablethereonundersection66BofthesaidAct,namely:
1.ServicesprovidedtotheUnitedNationsoraspecifiedinternationalorganization
2.Healthcareservicesbyaclinicalestablishment,anauthorisedmedicalpractitionerorparamedics
3.Servicesbyaveterinaryclinicinrelationtohealthcareofanimalsorbirds
4. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable
activities
5.Servicesbyapersonbywayof
(a)rentingofprecinctsofareligiousplacemeantforgeneralpublicor
(b)conductofanyreligiousceremony

6,Servicesprovidedby
(a)anarbitraltribunalto
(i)anypersonotherthanabusinessentityor
(ii)abusinessentitywithaturnoveruptorupeestenlakhintheprecedingfinancial
year
(b)anindividualasanadvocateorapartnershipfirmofadvocatesbywayoflegal
servicesto,
(i)anadvocateorpartnershipfirmofadvocatesprovidinglegalservices
(ii)anypersonotherthanabusinessentityor
(iii)abusinessentitywithaturnoveruptorupeestenlakhintheprecedingfinancial
yearor
(c)apersonrepresentedonanarbitraltribunaltoanarbitraltribunal

7.Servicesbywayoftechnicaltestingoranalysisofnewlydevelopeddrugs,includingvaccines
and herbal remedies, on human participants by a clinical research organisation approved to
conductclinicaltrialsbytheDrugControllerGeneralofIndia
8.Servicesbywayoftrainingorcoachinginrecreationalactivitiesrelatingtoarts,cultureor
sports
9.Servicesprovidedtoorbyaneducationalinstitutioninrespectofeducationexempted
fromservicetax,bywayof,
(a)auxiliaryeducationalservicesor

(b)rentingofimmovableproperty
10.Servicesprovidedtoarecognisedsportsbodyby
(a)anindividualasaplayer,referee,umpire,coachorteammanagerforparticipationina
sportingeventorganizedbyarecognizedsportsbody
(b)anotherrecognisedsportsbody
11.Servicesbywayofsponsorshipofsportingeventsorganised,
(a) by a national sports federation, or its affiliated federations, where the
participatingteamsorindividualsrepresentanydistrict,stateorzone
(b)byAssociationofIndianUniversities,InterUniversitySportsBoard,School
GamesFederationofIndia,AllIndiaSportsCouncilfortheDeaf,Paralympic
CommitteeofIndiaorSpecialOlympicsBharat
(c)byCentralCivilServicesCulturalandSportsBoard
(d)aspartofnationalgames,byIndianOlympicAssociationor
(e)underPanchayatYuvaKreedaAurKhelAbhiyaan(PYKKA)Scheme
12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection,
commissioning,installation,completion,fittingout,repair,maintenance,renovation,oralterationof

(a) acivilstructureoranyotheroriginalworksmeantpredominantlyforuse other than

forcommerce,industry,oranyotherbusinessorprofession
(b) a historical monument, archaeological site or remains of national importance,
archaeological excavation, or antiquity specified under the Ancient Monuments and
ArchaeologicalSitesandRemainsAct,1958(24of1958)
(c)astructuremeantpredominantlyforuseas(i)aneducational,(ii)aclinical,or(iii)an
artorculturalestablishment
(d)canal,damorotherirrigationworks
(e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage
treatmentordisposalor
(f)aresidentialcomplexpredominantlymeantforselfuseortheuseoftheiremployeesor
otherpersonsspecifiedintheExplanation1toclause44ofsection65BofthesaidAct
13.

Services provided by way of construction, erection, commissioning, installation,

completion,fittingout,repair,maintenance,renovation,oralterationof,
(a)aroad,bridge,tunnel,orterminalforroadtransportationforusebygeneralpublic
(b)acivilstructureoranyotheroriginalworkspertainingtoaschemeunderJawaharlal
NehruNationalUrbanRenewalMissionorRajivAwaasYojana
(c) abuildingownedbyanentityregisteredundersection12AAoftheIncometaxAct,
1961(43of1961)andmeantpredominantlyforreligioususebygeneralpublic
(d)apollutioncontroloreffluenttreatmentplant,exceptlocatedasapartofafactoryor
astructuremeantforfuneral,burialorcremationofdeceased
14.Servicesbywayofconstruction,erection,commissioning,orinstallationoforiginalworkspertainingto,

(a)anairport,portorrailways,includingmonorailormetro
(b)asingleresidentialunitotherwisethanasapartofaresidentialcomplex
(c) lowcosthousesuptoacarpetareaof60squaremetresperhouseinahousingprojectapprovedbycompetent
authorityempoweredundertheSchemeofAffordableHousinginPartnershipframedbytheMinistryofHousing
andUrbanPovertyAlleviation,GovernmentofIndia

(d)postharveststorageinfrastructureforagriculturalproduceincludingacoldstoragesforsuchpurposesor
(e) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as
foodstuffexcludingalcoholicbeverages

15.Temporarytransferorpermittingtheuseorenjoymentofacopyrightcoveredunderclauses
(a) or (b) of subsection (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957),
relatingtooriginalliterary,dramatic,musical,artisticworksorcinematographfilms
16.Servicesbyaperformingartistinfolkorclassicalartformsof(i)music,or(ii)dance,or(iii)
theatre,excludingservicesprovidedbysuchartistasabrandambassador
17.Servicesbywayofcollectingorprovidingnewsbyanindependentjournalist,PressTrustof
IndiaorUnitedNewsofIndia
18.Servicesbywayofrentingofahotel,inn,guesthouse,club,campsiteorothercommercial
places meant for residential or lodging purposes, having declared tariff of a unit of
accommodationbelowrupeesonethousandperdayorequivalent
19.Servicesprovidedinrelationtoservingoffoodorbeveragesbyarestaurant,eatingjointor
amess,otherthanthosehaving(i)thefacilityofairconditioningorcentralairheatingin
any part of the establishment, at any time during the year, and (ii) a licence to serve
alcoholicbeverages
20.ServicesbywayoftransportationbyrailoravesselfromoneplaceinIndiatoanotherofthe
followinggoods
(a)petroleumandpetroleumproductsfallingunderChapterheading2710and2711ofthe
FirstScheduletotheCentralExciseTariffAct,1985(5of1986)
(b)reliefmaterialsmeantforvictimsofnaturalormanmadedisasters,calamities,accidents
ormishap
(c)defenceormilitaryequipments
(d)postalmailormailbags
(e)householdeffects
(f)newspaperormagazinesregisteredwiththeRegistrarofNewspapers
(g)railwayequipmentsormaterials
(h)agriculturalproduce
(i)foodstuffincludingflours,tea,coffee,jaggery,sugar,milkproducts,saltandedibleoil,
excludingalcoholicbeveragesor
(j)chemicalfertilizerandoilcakes
21.Servicesprovidedbyagoodstransportagencybywayoftransportationof
(a)fruits,vegetables,eggs,milk,foodgrainsorpulsesinagoodscarriage
(b) goods where gross amount charged for the transportation of goods on a consignment
transported in a single goods carriage does not exceed one thousand five hundred
rupeesor
(c) goods, where gross amount charged for transportation of all such goods for a single
consigneeinthegoodscarriagedoesnotexceedrupeessevenhundredfifty
22.Servicesbywayofgivingonhire

(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve
passengersor
(b)toagoodstransportagency,ameansoftransportationofgoods

23.Transportofpassengers,withorwithoutaccompaniedbelongings,by
(a) air, embarking from or terminating in an airport located in the state of Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at
BagdogralocatedinWestBengal
(b) a contract carriage for the transportation of passengers, excluding tourism, conducted
tour,charterorhireor
(c)ropeway,cablecaroraerialtramway
24.Servicesbywayofvehicleparkingtogeneralpublicexcludingleasingofspacetoanentity
forprovidingsuchparkingfacility
25.ServicesprovidedtoGovernment,alocalauthorityoragovernmentalauthoritybywayof
(a)carryingoutanyactivityinrelationtoanyfunctionordinarilyentrustedtoamunicipality
in relation to water supply, public health, sanitation conservancy, solid waste
managementorslumimprovementandupgradationor
(b)repairormaintenanceofavesseloranaircraft
26.Servicesofgeneralinsurancebusinessprovidedunderfollowingschemes
(a)HutInsuranceScheme
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as
IntegratedRuralDevelopmentProgramme)
(c)SchemeforInsuranceofTribals
(d)JanataPersonalAccidentPolicyandGraminAccidentPolicy
(e)GroupPersonalAccidentPolicyforSelfEmployedWomen
(f)AgriculturalPumpsetandFailedWellInsurance
(g)premiacollectedonexportcreditinsurance
(h)WeatherBasedCropInsuranceSchemeortheModifiedNationalAgriculturalInsurance
Scheme, approved by the Government of India and implemented by the Ministry of
Agriculture
(i)JanArogyaBimaPolicy
(j)NationalAgriculturalInsuranceScheme(RashtriyaKrishiBimaYojana)
(k)PilotSchemeonSeedCropInsurance
(l)CentralSectorSchemeonCattleInsurance
(m)UniversalHealthInsuranceScheme
(n)RashtriyaSwasthyaBimaYojanaor
(o)CoconutPalmInsuranceScheme
27.Servicesprovidedbyanincubateeuptoatotalturnoveroffiftylakhrupeesinafinancial
yearsubjecttothefollowingconditions,namely:
(a)thetotalturnoverhadnotexceededfiftylakhrupeesduringtheprecedingfinancialyear
and
(b)aperiodofthreeyearshasnotbeenelapsedfromthedateofenteringintoanagreement
asanincubatee
28.Servicebyanunincorporatedbodyoranonprofitentityregisteredunderanylawforthe
timebeinginforce,toitsownmembersbywayofreimbursementofchargesorshareof
contribution
(a)asatradeunion

(b)fortheprovisionofcarryingoutanyactivitywhichisexemptfromthelevyofservicetax
or
(c)uptoanamountoffivethousandrupeespermonthpermemberforsourcingofgoodsor
servicesfromathirdpersonforthecommonuseofitsmembersinahousingsocietyora
residentialcomplex
29.Servicesbythefollowingpersonsinrespectivecapacities
(a)subbrokeroranauthorisedpersontoastockbroker
(b)authorisedpersontoamemberofacommodityexchange
(c)mutualfundagenttoamutualfundorassetmanagementcompany
(d)distributortoamutualfundorassetmanagementcompany
(e)sellingormarketingagentoflotteryticketstoadistributerorasellingagent
(f)sellingagentoradistributerofSIMcardsorrechargecouponvouchers
(g) businessfacilitatororabusinesscorrespondenttoabankingcompanyoraninsurance
company,inaruralareaor
(h) subcontractor providing services by way of works contract to another contractor
providingworkscontractserviceswhichareexempt
30.Carryingoutanintermediateproductionprocessasjobworkinrelationto
(a)agriculture,printingortextileprocessing
(b) cutandpolisheddiamondsandgemstonesorplainandstuddedjewelleryofgoldand
otherpreciousmetals,fallingunderChapter71oftheCentralExciseTariffAct,1985(5of
1986)
(c)anygoodsonwhichappropriatedutyispayablebytheprincipalmanufactureror
(d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating,
painting including spray painting or auto black, during the course of manufacture
ofpartsofcyclesorsewingmachinesuptoanaggregatevalueoftaxableserviceofthe
specifiedprocessesofonehundredandfiftylakhrupeesinafinancialyearsubjecttothe
conditionthatsuchaggregatevaluehadnotexceededonehundredandfiftylakhrupees
duringtheprecedingfinancialyear
31.ServicesbyanorganisertoanypersoninrespectofabusinessexhibitionheldoutsideIndia
32.Servicesbywayofmakingtelephonecallsfrom
(a)departmentallyrunpublictelephone
(b)guaranteedpublictelephoneoperatingonlyforlocalcallsor
(c)freetelephoneatairportandhospitalwherenobillsarebeingissued
33.Servicesbywayofslaughteringofbovineanimals

34.Servicesreceivedfromaproviderofservicelocatedinanontaxableterritoryby
(a) Government,alocalauthority,agovernmentalauthorityoranindividualinrelationto
anypurposeotherthancommerce,industryoranyotherbusinessorprofession
(b)anentityregisteredundersection12AAoftheIncometaxAct,1961(43of1961)forthe
purposesofprovidingcharitableactivitiesor

(c)apersonlocatedinanontaxableterritory

35.Servicesofpubliclibrariesbywayoflendingofbooks,publicationsoranyotherknowledge
enhancingcontentormaterial
36.ServicesbyEmployeesStateInsuranceCorporationtopersonsgovernedunderthe
EmployeesInsuranceAct,1948(34of1948)
37.Servicesbywayoftransferofagoingconcern,asawholeoranindependentpartthereof
38. Services by way of public conveniences such as provision of facilities of bathroom,
washrooms,lavatories,urinalortoilets
39. Services by a governmental authority by way of any activity in relation to any function
entrustedtoamunicipalityunderarticle243WoftheConstitution.

2.Definitions.Forthepurposeofthisnotification,unlessthecontextotherwiserequires,
(a)Advocatehasthemeaningassignedtoitinclause(a)ofsubsection(1)ofsection2ofthe
AdvocatesAct,1961(25of1961)
(b)appropriatedutymeansdutypayableonmanufactureorproductionunderaCentralAct
oraStateAct,butshallnotincludeNilrateofdutyordutywhollyexempt
(c)arbitraltribunalhasthemeaningassignedtoitinclause(d)ofsection2oftheArbitration
andConciliationAct,1996(26of1996)
(d)authorisedmedicalpractitionermeansamedicalpractitionerregisteredwithanyofthe
councils of the recognised system of medicines established or recognized by law in India and
includesamedicalprofessionalhavingtherequisitequalificationtopracticeinanyrecognised
systemofmedicinesinIndiaasperanylawforthetimebeinginforce
(e)"authorised person means any person who is appointed as such either by a stock broker
(includingtradingmember)orbyamemberofacommodityexchangeandwhoprovidesaccess
to trading platform of a stock exchange or a commodity exchange as an agent of such stock
brokerormemberofacommodityexchange
(f) auxiliary educational services means any services relating to imparting any skill,
knowledge, education or development of course content or any other knowledge
enhancement activity, whether for the students or the faculty, or any other services which
educationalinstitutionsordinarilycarryoutthemselvesbutmayobtainasoutsourcedservices
fromanyotherperson,includingservicesrelatingtoadmissiontosuchinstitution,conductof
examination, catering for the students under any midday meals scheme sponsored by
Government,ortransportationofstudents,facultyorstaffofsuchinstitution
(g) banking company has the meaning assigned to it in clause (a) of section 45A of the
ReserveBankofIndiaAct,1934(2of1934)
(h) brand ambassador means a person engaged for promotion or marketing of a brand of
goods,service,propertyoractionableclaim,eventorendorsementofname,includingatrade
name,logoorhousemarkofanyperson
(i)businessfacilitatororbusinesscorrespondentmeansanintermediaryappointedunderthe
business facilitator model or the business correspondent model by a banking company or an
insurancecompanyundertheguidelinesissuedbyReserveBankofIndia
(j) "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other
institution by, whatever name called, that offers services or facilities requiring diagnosis or
treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised
system of medicines in India, or a place established as an independent entity or a part of an
establishmenttocarryoutdiagnosticorinvestigativeservicesofdiseases

(k)charitableactivitiesmeansactivitiesrelatingto
(i)publichealthbywayof
(a)careorcounselingof(i)terminallyillpersonsorpersonswithseverephysicalormental
disability,(ii)personsafflictedwithHIVorAIDS,or(iii)personsaddictedtoadependence
formingsubstancesuchasnarcoticsdrugsoralcoholor
(b)publicawarenessofpreventivehealth,familyplanningorpreventionofHIVinfection
(ii)advancementofreligionorspirituality
(iii)advancementofeducationalprogrammesorskilldevelopmentrelatingto,
(a)abandoned,orphanedorhomelesschildren
(b)physicallyormentallyabusedandtraumatizedpersons
(c)prisonersor
(d)personsovertheageof65yearsresidinginaruralarea
(iv)preservationofenvironmentincludingwatershed,forestsandwildlifeor

(v)advancementofanyotherobjectofgeneralpublicutilityuptoavalueof,

(a)eighteenlakhandseventyfivethousandrupeesfortheyear201213subjectto
the condition that total value of such activities had not exceeded twenty five
lakhsrupeesduring201112
(b)twentyfivelakhrupeesinanyotherfinancialyearsubjecttotheconditionthat
totalvalueofsuchactivitieshadnotexceededtwentyfivelakhsrupeesduring
theprecedingfinancialyear

(l)commodityexchangemeansanassociationasdefinedinsection2(j)andrecognizedunder
section6oftheForwardContracts(Regulation)Act,1952(74of1952)
(m)contract carriage has the meaning assigned to it in clause (7) of section 2 of the Motor
VehiclesAct,1988(59of1988)
(n)declared tariff includes charges for all amenities provided in the unit of accommodation
(givenonrentforstay)likefurniture,airconditioner,refrigeratorsoranyotheramenities,but
withoutexcludinganydiscountofferedonthepublishedchargesforsuchunit
(o)distributororsellingagenthasthemeaningassignedtotheminclause(c)oftherule2of
the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of
HomeAffairs,publishedintheGazetteofIndia,Extraordinary,PartII,Section3,Subsection
(i),videnumberG.S.R.278(E),datedthe1stApril,2010andshallincludedistributororselling
agentauthorisedbythelotteryorganisingState
(p) "general insurance business" has the meaning assigned to it in clause (g) of section 3 of
GeneralInsuranceBusiness(Nationalisation)Act,1972(57of1972)
(q)general public means the body of people at large sufficiently defined by some common
qualityofpublicorimpersonalnature
(r)goods carriage has the meaning assigned to it in clause (14) of section 2 of the Motor
VehiclesAct,1988(59of1988)
(s)governmentalauthoritymeansaboard,oranauthorityoranyotherbodyestablishedwith
90%ormoreparticipationbywayofequityorcontrolbyGovernmentandsetupbyanActof
theParliamentoraStateLegislaturetocarryoutanyfunctionentrustedtoamunicipalityunder
article243WoftheConstitution
(t)healthcareservicesmeansanyservicebywayofdiagnosisortreatmentorcareforillness,
injury,deformity,abnormalityorpregnancyinanyrecognisedsystemofmedicinesinIndiaand

includesservicesbywayoftransportationofthepatienttoandfromaclinicalestablishment,
butdoesnotincludehairtransplantorcosmeticorplasticsurgery,exceptwhenundertakento
restore or to reconstruct anatomy or functions of body affected due to congenital defects,
developmentalabnormalities,injuryortrauma
(u)incubatee means an entrepreneur located within the premises of a Technology Business
Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the
National Science and Technology Entrepreneurship Development Board (NSTEDB) of the
Department of Science and Technology, Government of India and who has entered into an
agreement with the TBI or the STEP to enable himself to develop and produce hitech and
innovativeproducts
(v)insurance company means a company carrying on life insurance business or general
insurancebusiness
(w)legalservicemeansanyserviceprovidedinrelationtoadvice,consultancyorassistancein
any branch of law, in any manner and includes representational services before any court,
tribunalorauthority
(x)life insurance business has the meaning assigned to it in clause (11) of section 2 of the
InsuranceAct,1938(4of1938)
(y) original works means has the meaning assigned to it in Rule 2A of the Service Tax
(DeterminationofValue)Rules,2006
(z)principalmanufacturermeansanypersonwhogetsgoodsmanufacturedorprocessedon
hisaccountfromanotherperson
(za)recognizedsportsbodymeans(i)theIndianOlympicAssociation,(ii)SportsAuthority
ofIndia,(iii)anationalsportsfederationrecognisedbytheMinistryofSportsandYouthAffairs
of the Central Government, and its affiliate federations, (iv) national sports promotion
organisations recognised by the Ministry of Sports and Youth Affairs of the Central
Government, (v) the International Olympic Association or a federation recognised by the
International Olympic Association or (vi) a federation or a body which regulates a sport at
internationallevelanditsaffiliatedfederationsorbodiesregulatingasportinIndia
(zb)religiousplacemeansaplacewhichisprimarilymeantforconductofprayersorworship
pertainingtoareligion,meditation,orspirituality
(zc) residential complex means any complex comprising of a building or buildings, having
morethanonesingleresidentialunit
(zd)rural area means the area comprised in a village as defined in land revenue records,
excluding
theareaunderanymunicipalcommittee,municipalcorporation,townareacommittee,
cantonmentboardornotifiedareacommitteeor
any area that may be notified as an urban area by the Central Government or a State
Government
(ze)singleresidentialunitmeansaselfcontainedresidentialunitwhichisdesignedforuse,
whollyorprincipally,forresidentialpurposesforonefamily
(zf)"specifiedinternationalorganization"meansaninternationalorganizationdeclaredbythe
Central Government in pursuance of section 3 of the United Nations (Privileges and
Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act
apply

(zg)"statetransportundertaking"hasthemeaningassignedtoitinclause(42)ofsection2of
theMotorVehiclesAct,1988(59of1988)
(zh)"subbroker"hasthemeaningassignedtoitinsubclause(gc)ofclause2oftheSecurities
andExchangeBoardofIndia(StockBrokersandSubbrokers)Regulations,1992
(zi)tradeunionhasthemeaningassignedtoitinclause(h)ofsection2oftheTradeUnions
Act,1926(16of1926).
3.Thisnotificationshallcomeintoforceonthe1stdayofJuly,2012.
[F.No.334/1/2012TRU]

(RajkumarDigvijay)
UnderSecretarytotheGovernmentofIndia