exempts the taxable service provided to a customer

Indian Service Tax

Notifications

Exemption to a Customer

[Notificatation No. 18/2003-ST, dt. 21/8/2003]

In exercise of the powers conferred by Section 93 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 exempts the taxable service provided to a customer l[in relation to erection, commissioning or installation] by a commissioning and installation agency, other than a commercial concern, from the service tax leviable thereon under section 66 of the said Act.

Partial Exemption

[Notification No. 19/2003-ST, dt. 21/8/2003]

In exercise of the powers conferred by section 93 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 exempts the taxable service provided to a customer in relation to 2[ erection, commissioning or installation] by a commissioning and installation agency, from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the amount of service tax calculated on a value which is equivalent to thirty-three per cent of the gross amount charged from the customer under a contract for supplying a plant, machinery or equipment and 2[erection, commissioning or installation] of the said plant, machinery or equipment, subject to the following conditions, namely:­

(i) the exemption contained in this notification is optional to the commissioning and installation agency and

(ii) the benefit under this notification shall be allowed only if the commissioning and installation agency has not availed the benefit under the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2003-ST, dated the 20th June, 2003, [G.S.R. 503 (E), dated the 20th June, 2003], for the said contract.

¹[(iii) the benefit under this notification shall be allowed only if no credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004.] Explanation.

For the purposes of this notification, the gross amount charged shall include the value of the plant, machinery, equipment, parts and any other material sold by the commissioning and installation agency, during the course of providing 2[ erection, commissioning or installation] service.

Prior to 10/9/2004

[Notification No. 25/2004-ST, dated 10/9/2004]

For full text see under "Banking & Other Financial Services".