NO SERVICE TAX ON SERVICES PROVIDED BY GOVERNMENT TO BUSINESS ENTITY, IF THE TURNOVER DOES NOT EXCEEDS RS. 10 LAKH

SECTION 66B OF THE FINANCE ACT, 1994 - CHARGE OF SERVICE TAX ON AND AFTER

FINANCE ACT, 2012 - MEGA EXEMPTION NOTIFICATIONS - AMENDMENT IN NOTIFICATION NO.25/2012-ST, DATED JUNE 20, 2012

NOTIFICATION NO.7/2016-ST, DATED FEBRUARY 18, 2016

In exercise of the powers conferred by sub-section (1) of 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 makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.25/2012- Service Tax, dated the June 20, 2012, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 467 (E), dated the 20th June, 2012, namely:—

1. In the said notification, in the opening paragraph,

(i) after entry No. 47, the following shall be inserted, namely—

"(48) Services provided by Government or a local authority to a business entity with a turnover up to rupees “Ten Lakh” in the preceding financial year."

2. The amendment shall come into effect on April 1, 2016.

This is in view of Modi’s ease of doing business in India, helping small scale service providers.