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Exempt Services under Service Tax Law

Description: This quiz covers the various services that are exempt from Service Tax under the Indian Service Tax Law.
Number of Questions: 15
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Tags: service tax exempt services indian law
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Which of the following services is exempt from Service Tax under the Indian Service Tax Law?

  1. Transportation of goods by road

  2. Legal services

  3. Educational services

  4. Hotel accommodation


Correct Option: C
Explanation:

Educational services provided by educational institutions are exempt from Service Tax under the Indian Service Tax Law.

What is the condition for exemption of services provided by a charitable trust from Service Tax?

  1. The trust must be registered under the Indian Trust Act, 1882.

  2. The trust must be engaged in providing educational or medical services.

  3. The trust must have a valid PAN.

  4. All of the above


Correct Option: D
Explanation:

In order to be exempt from Service Tax, a charitable trust must be registered under the Indian Trust Act, 1882, engaged in providing educational or medical services, and have a valid PAN.

Which of the following services provided by a hospital is exempt from Service Tax?

  1. In-patient services

  2. Out-patient services

  3. Diagnostic services

  4. All of the above


Correct Option: D
Explanation:

All services provided by a hospital, including in-patient services, out-patient services, and diagnostic services, are exempt from Service Tax.

What is the exemption limit for services provided by a tour operator?

  1. Rs. 10 lakhs

  2. Rs. 20 lakhs

  3. Rs. 30 lakhs

  4. Rs. 40 lakhs


Correct Option: A
Explanation:

Services provided by a tour operator are exempt from Service Tax up to a limit of Rs. 10 lakhs.

Which of the following services provided by a courier agency is exempt from Service Tax?

  1. Domestic courier services

  2. International courier services

  3. Both domestic and international courier services

  4. None of the above


Correct Option: A
Explanation:

Domestic courier services provided by a courier agency are exempt from Service Tax.

What is the condition for exemption of services provided by an advocate from Service Tax?

  1. The advocate must be a member of the Bar Council of India.

  2. The advocate must have a valid PAN.

  3. The advocate must be engaged in providing legal services to individuals.

  4. All of the above


Correct Option: D
Explanation:

In order to be exempt from Service Tax, an advocate must be a member of the Bar Council of India, have a valid PAN, and be engaged in providing legal services to individuals.

Which of the following services provided by a financial institution is exempt from Service Tax?

  1. Banking services

  2. Insurance services

  3. Mutual fund services

  4. All of the above


Correct Option: D
Explanation:

All services provided by a financial institution, including banking services, insurance services, and mutual fund services, are exempt from Service Tax.

What is the exemption limit for services provided by a manpower recruitment agency?

  1. Rs. 5 lakhs

  2. Rs. 10 lakhs

  3. Rs. 15 lakhs

  4. Rs. 20 lakhs


Correct Option: B
Explanation:

Services provided by a manpower recruitment agency are exempt from Service Tax up to a limit of Rs. 10 lakhs.

Which of the following services provided by a travel agent is exempt from Service Tax?

  1. Booking of air tickets

  2. Booking of train tickets

  3. Booking of hotel accommodation

  4. All of the above


Correct Option: D
Explanation:

All services provided by a travel agent, including booking of air tickets, booking of train tickets, and booking of hotel accommodation, are exempt from Service Tax.

What is the condition for exemption of services provided by a stockbroker from Service Tax?

  1. The stockbroker must be a member of the stock exchange.

  2. The stockbroker must have a valid PAN.

  3. The stockbroker must be engaged in providing broking services to individuals.

  4. All of the above


Correct Option: D
Explanation:

In order to be exempt from Service Tax, a stockbroker must be a member of the stock exchange, have a valid PAN, and be engaged in providing broking services to individuals.

Which of the following services provided by a chartered accountant is exempt from Service Tax?

  1. Accounting services

  2. Auditing services

  3. Taxation services

  4. All of the above


Correct Option: D
Explanation:

All services provided by a chartered accountant, including accounting services, auditing services, and taxation services, are exempt from Service Tax.

What is the exemption limit for services provided by a legal consultant?

  1. Rs. 5 lakhs

  2. Rs. 10 lakhs

  3. Rs. 15 lakhs

  4. Rs. 20 lakhs


Correct Option: B
Explanation:

Services provided by a legal consultant are exempt from Service Tax up to a limit of Rs. 10 lakhs.

Which of the following services provided by a management consultant is exempt from Service Tax?

  1. Business consulting services

  2. Financial consulting services

  3. Human resources consulting services

  4. All of the above


Correct Option: D
Explanation:

All services provided by a management consultant, including business consulting services, financial consulting services, and human resources consulting services, are exempt from Service Tax.

What is the condition for exemption of services provided by an architect from Service Tax?

  1. The architect must be a member of the Council of Architecture.

  2. The architect must have a valid PAN.

  3. The architect must be engaged in providing architectural services to individuals.

  4. All of the above


Correct Option: D
Explanation:

In order to be exempt from Service Tax, an architect must be a member of the Council of Architecture, have a valid PAN, and be engaged in providing architectural services to individuals.

Which of the following services provided by an engineer is exempt from Service Tax?

  1. Civil engineering services

  2. Mechanical engineering services

  3. Electrical engineering services

  4. All of the above


Correct Option: D
Explanation:

All services provided by an engineer, including civil engineering services, mechanical engineering services, and electrical engineering services, are exempt from Service Tax.

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