What is Not Service as Per Service Tax: Negative List

Negative List Of Services As Introduced In Year 2012’s Budget :

A new concept of negative list for service tax was announced in the year 2012 budget, which overcomes the previous version. Earlier service tax was levied on certain specified services only. New system ensures that expect those services that have been listed in the negative list, all other services will be subject to service tax.

They are:

Services which are provided by the Government or a by the local authority which excludes certain services to such an extent that they are not taken care of somewhere else are listed as negative taxable services for service tax liability. These are the services made available to an individual apart from the Government by Postal department by the usage of parcel post express service, and Services imparted by agencies. The negative list of service tax services also includes Aircrafts related services; provided in and out premises of an airport. The negative list of service tax services also supports Passenger or goods transport; or services support.

Service provided by the RBI and Service imparted by a foreign ambassadorial entity situated in India are also part of it.

Agriculture related services or agricultural products which are produced by means of various operations which are associated to the manufacture of farming related products such as cultivation, plant protection, threshing, or testing of seeds and Farm labor supply.

Agricultural related services also include processes such as fumigating, cleaning, cooling, sun drying, pruning or mass packing and other activities. Operations which essentially do not hamper the nature of farming produce but also make it highly demanded in the market.

Process of leasing or renting of vacant land or farming machinery or empty land is also under the umbrella. Primary methods such as unloading, loading, storage, packing or storing of farming related produce are also part of it.

Other Services Include

  • Services for agricultural extension;
  • Farming related production Committee based services  or agency working for commission for purchase or sale of farming produce provided services

Trading of supplies and production and manufacturing of goods Process is part of it. Time or space slots selling for advertisements apart from the advertisements broadcast by television or radio is also under the list.

Few Other Services That Come Under The Same Umbrella Are:

  • Toll charges for the service imparted by means of admittance to a bridge or a road.
  • Lottery, Betting, or gambling.
  • Admission entry into amusement based facilities or Entertainment events.
  • Electricity Distribution and transmission by utility provider based on electricity.
  • Services by means of renting the residential apartment for others to use as home;

Services by means of Education forms a great part, which Ranges from junior college level and low down up to kindergarten education and also includes part of any syllabus for securing a qualification which is accepted by law and also a branch of a certified professional education course.

Services by means of extending loans, deposits and advances in the type of consideration are shown by means of discount or interest is also part of it. It also includes purchase or sale of foreign money in the midst of banks or any other official dealers of forex or amidst banks and other dealers;

Transportation service for passengers who have or do not have any assets of their own, by various methods such as Stage carriage, Railways are in a different class apart from either any ac coach or first class; monorail, metro, or tramway; Mainland waterways; Public transport which are not mostly for tourism reason, between places which are sited in India; as well as Radio taxis, auto rickshaws or metered cabs;

Services by transporting goods either via road except for the stipulation of service from a transportation agency for goods; or a agency involved in courier services; It can also be done via an aircraft from a location outside India and till the clearing customs station situated in India; otherwise via mainland waterways;

Mortuary, crematorium, burial, or Funeral services including the process of moving the deceased are also part of it.

Notes for the list:

Certain exemption has been made in accumulation to the Negative List. Finance act includes a section named 66D which invokes the negative list as per budget list of service tax 2012.

The service tax levied, service charge and the service taxability has been clearly mentioned in section named 66B of the finance Act.

It states that if a service is actually taxable, then it should be either given by an individual to another or it must be within the area which is taxable.

If neither of this is followed, it must not be mentioned in the negative list for service tax.

What is Not Service as Per Service Tax: Negative List Of Services