Chapter: 3.1 Services Exempt

Services Exempt:

All categories of taxable services are exempt from service tax in the following circumstances:

• Services for which payments are received in India in convertible foreign exchange and the same are not repatriated from or sent outside India fully exempted up to 14th March, 2005.
•    Services provided to United Nations or an International Organization fully exempted.
•    Services provided to a developer of SEZ or a unit (including unit under construction) of SEZ by any service provider for consumption of services within SEZ subject to prescribed conditions.
•    Value of goods and material (supported by documentary evidence) sold by service provider to the recipient of service subject to following conditions:                                      

i.    Service provider has not availed credit under CENVAT Credit Rules, 2004 for such inputs or capital goods sold;
ii.    In case such credit is availed by service provider, the amount equal to such credit is paid before sale of such goods or material.