A small business entity is carrying on a business relating to consulting engineer services in Delhi. Does it need to pay tax on the services received from Government or a local authority?

1. If turnover of the entity is less than the limit of Rs. 20 lakhs in a financial year, no tax would be payable. The exemption from payment of tax is applicable to
   services provided to a business entity having a turnover up to Rs. 20 lakh rupees.
2. However, this exemption is not applicable to :-

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of an airport or a port;

(iii) services of transport of goods or passengers and

(iv) services by way of renting of immovable property.