We know that

Exemption is a scheme of government to make service tax free

Central Government issues exemption notifications to make Service Tax free

There were number of notifications which were difficult to remember and memorize

Hence,these notifications were combined and one single notification was issued for all exemptions.

This notification was called



It was issued vide Notification 25/2012 but was later ameneded by a number of notifications

(latest being notification 12/2015)


Original Notification   Notification No. 25/2012-Service Tax, dated 20.06.2012:


  • Notification No. 44/2012 - Service Tax, Dated 07/08/2012;

  • Notification No.49/2012 - Service Tax, Dated 24/12/2012;

  • Notification no. 3/2013 - ST dated 1.3.2013, ;
  • Notification No.13/2013 - Service Tax September 10, 2013;
  • Notification No. 14/2013-Service Tax, dated, 22.10.2013;
  • Notification No. 01/2014 - Service Tax January 10, 2014 ;
  • Notification No. 02/2014 - Service Ta x  January 30, 2014 ;
  • Notification No.06/2014 - Service Tax dated 11th July, 2014 ;
  • Notification No.17/2014 - Service Tax, the 20th August, 2014 ;
  • Notification No.  06/2015 -Service Tax, Dated 1-3-2015
  • Notification No.  12/2015 -Service Tax, Dated 30-4-15

We dont have to study each of these notification separately

Combined effect of all these services needs to be studied


Lets study this amended notification in detail one by one


Exam Questions

Question 1

Good Health Medical Centre, a clinical establishment, offers following services:

(i) Reiki healing treatments. Such therapy is not a recognized system of medicine in terms of section 2(h) of Clinical Establishments Act, 2010.

(ii) Plastic surgeries. One such surgery was conducted to repair cleft lip of a new born baby.

(iii) Air ambulance services to transport critically ill patients from distant locations to the Medical Centre.

(iv) Palliative care for terminally ill patients. On request, such care is also provided to patients at their homes. (Palliative care is given to improve the quality of life of patients who have a serious or life-threatening disease but the goal of such care is not to cure the disease).

(v) Alternative medical treatments by way of yoga

Good Health Medical Centre also operates a cord blood bank which provides services in relation to preservation of stem cells.

Good Health Medical Centre is of the view that since it is a clinical establishment, all the service provided by it as well as all the services provided to it are exempt from payment of
service tax. You are required to examine the situation in the light of relevant statutory provisions.

View Answer

Question 2
An individual acts as a referee in a football match organized by Sports Authority of India. He
has also acted as a referee in another charity football match organized by a local sports club,
in lieu of a lump sum payment. Discuss whether he is required to pay any service tax.

View Answer

Question 3
RXL Pvt. Ltd. manufactures beauty soap with the brand name ‘Forever Young’. RXL Pvt. Ltd.
has organized a concert to promote its brand. Ms. Ahana Kapoor, its brand ambassador, who
is a leading film actress, has given a classical dance performance in the said concert. The
proceeds of the concert will be donated to a charitable organization.
Explain whether Ms. Ahana Kapoor will be required to pay any service tax.

View Answer

Question 4
High Alps Cable Car Co. runs a cable car to transport pilgrims uphill to a mountain top where
a holy shrine is situated. Examine whether High Alps Cable Car Co. is required to pay any
service tax.

View Answer

Question 8
Determine the applicability of service tax in each of the following independent cases:
(i) External asset management services received by Reserve Bank of India from overseas
financial institutions.
(ii) Service provided by an Indian tour operator to Mr. B, a Japanese National, for a tour
conducted in Europe.
(iii) Services provided to a Higher Secondary School affiliated to CBSE Board by an IT
company in relation to development of a software to be used for enhancing the quality of
classroom teaching.

View Answer

Question 12
Examine the validity of following statements with reference to service tax law:
(i) Consultancy services provided to Government in relation to slum improvement and
upgradation is exempt from service tax.

(iv) Service provided for transport of passengers by air conditioned buses is exempt from
service tax.

View Answer


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.