G.S.R. (E).- 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 exempts taxable service provided to a client by any person "OLD- a commercial concern " in relation to the business auxiliary service, in so far as it relates to,-

(In above para the words "any person" has been substituted vide Notification No. 19/2006-ST, DT. 25/04/2006)

(a) procurement of goods or services, which are inputs for the client;
(b)production or processing of goods for, or on behalf of, the client;

(In clause (b), for the words “production of goods on behalf of the client;" has been substituted vide Notification. No. 19/2005-ST, DT. 07/06/2005)

"OLD(b) production of goods on behalf of the client;"

(c) provision of service on behalf of the client; or
(d) a service incidental or auxiliary to any activity specified in (a) to (c) above,

and provided in relation to agriculture, printing, textile processing or education, from the whole of service tax "OLD from the whole of the service tax" leviable thereon under section 66 of the said Finance Act:

(The words “from the whole of the service tax”, has been substituted & proviso has been omitted vide Notification. No. 19/2005-ST, DT.07/06/2005)

"OLD Provided that nothing in this notification shall apply to,-

(i) a factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(ii) a company established by or under the Companies Act, 1956 (1of 1956);

(iii) a partnership firm, whether registered or not registered;

(iv) a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India;

(v) a co-operative society established by or under any law;

(vi) a corporation established by or under any law; or

(vii) a body corporate established by or under any law,

unless such factory, company, partnership firm, society, co-operative society, corporation or body corporate, as the case may be, provides any business auxiliary service in respect of any activity specified in (a) to (d) above in relation to agriculture, printing, textile processing or education.]

[F. No. B2/8/2004-TRU]

(V. Sivasubramanian)
Deputy Secretary to the Government of India