In a major changes for two public sectoral entities, the Government has decided to exempt service taxes for “regulatory services” provided by SEBI and IRDA.
Reportedly, Besides, exemption would be extended to the services provided by the Employees’ Provident Fund Organisation (EPFO).
In theĀ Union BudgetĀ for 2016-17 unveiled yesterday, the government has provided service tax exemption for various activities, including those related to the Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority (IRDA).
The “regulatory services” provided by Sebi and Irda as well as the services offered by EPFO have been exempted from service tax with effect from 1 April 2016.
Presently, the service tax for these services is 14 percent.
According Union Budget, National Pension System regulated by Pension Fund Regulatory and Development Authority (PFRDA) has also been exempted from the service tax ambit which is presently the service tax of 3.5 percent.
