NEGATIVE LIST of Service Tax

Hi friends I think You came across Negative List in Taxation Right........?? Now it has become the scoring topic in this paper....so let us have a look towards it in brief.....

In terms of Section 66B of the Act, service tax will be leviable on all services provided in the taxable territory by a person to another for a consideration other than the services specified in the negative list.
The services specified in the negative list therefore go out of the ambit of chargeability of service tax.
The negative list of service is specified in the Act itself in Section 66D.

Negative list:

1.          Services by Government or a local authority excluding the following services to the extent they are not covered elsewhere:
   ·         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;
   ·         services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
   ·         Transport of goods or passengers; or
   ·         support service, other than services covered under clauses(a) to (b) above, provided to business entities.
2. Services by the Reserve bank of India.
3. Services by a foreign diplomatic mission located in India.
4.       Services relating to agriculture or agricultural produce by way of-
   ·          production of agricultural produce including cultivation, harvesting, thresting, plant protection or seed testing;
   ·         supply of farm labour;
   ·         processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating etc;
   ·         Renting or leasing of agro machinery or vacant land;
   ·         loading, unloading, packing, storage or warehousing of agricultural produce;
   ·         agricultural extension services;
   ·         sale or purchase of agricultural produce
5. Trading of goods.
6. Any process amounting to manufacture or production of goods.
7. Selling of space or time slots for advertisements other than advertisements broadcast by radio or television.
8. Service by way of access to a road or a bridge on payment of toll charges.
9. Betting, gambling or lottery.
10. Admission to entertainment events or access to amusement facilities.
11. Transmission or distribution of electricity by an electricity transmission or distribution utility.
12. service by way of pre-school education up to higher secondary school or equivalent;
13. Services by way of renting of residential dwelling for use as residence;
14. Services by way of inter-se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks or such dealers.
15. Services by way of transportation of passengers.
16. Services by way of transportation of goods.
17. Funeral, burial, crematorium or mortuary services including transportation of the deceased.

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