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Service tax at a Glance

 

"Negative List w.e.f. 01-Jul-2012-(as amended)"

 

S. No.

Services

Remarks

1.

Services provided by Government or any local authority except

  • Specified Services by postal department like speed post, service carried out for commission.
  • Certain services in relation to vessel/ aircraft
  • Transport of goods or passengers
  • Any Service{w.e.f. from date to be notified}{Presently Support Services} provided to business entities

“Support services” means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason

whatsoever and shall include  advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis

 

"business entity" means any person ordinarily carrying out any activity relating to industry, commerce or any other business.

Government includes departments and undertaking functioning in name of President/ Governor

In case of Support Services liability is of “Service Receiver” instead of Government under reverse charge mechanism

2.

Services relating to agriculture or agricultural produce-

[Agriculture- cultivation of plants and rearing or breeding of animals and other species of life forms for foods, fibre, fuel, raw materials or other similar products but does not include rearing of horses]

[Agricultural produce- any produce of agriculture on which either no processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.]

a)Specified agriculture operations

b) Supply of farm labour

c) Agricultural process which does not change the natural characteristics of the produce

d) Renting of agro machinery or vacant land

e) Loading, unloading, packing, storing etc of the produce

f) Agriculture extension services

g) Services provided by any Agriculture Produce Marketing Committee or services of a commission agent for the sale or purchase of agriculture produce.

 

3.

Trading of Goods

It covers Future contracts and commodity futures.

It does not cover Commission / C&F agent as their services are ancillary to trading activity

4.

Process amounting to manufacture or production of goods excl. alcoholic liquor for human consumption

Covered either in Central Excise or State Excise

Even if exempted under Central excise, still covered in (-) ve list

5.

Selling of space for advertisement in print media 

 

{does not cover commissions received by adv. agencies from broadcasting or publishing companies}

Taxable:

  • Sale of space or time for advertisement to be broadcast on radio or television.
  • Sale of time slot by a broadcasting organization Bill boards, public places, buildings, conveyances,
  • Cell phones, ATM
  • Internet, aerial advertising.

 

Non-Taxable: Sale of space for advertisement in Print media

6.

Education

Specified Service in negative list are

  • Preschool education to HSC or equivalent, eg. CIE
  • Education as a part of prescribed curriculum recognized by “Indian” law for time being in force
  • Approved vocational course by NCVT

 

7.

Residential Renting

Renting of residential dwelling for use as residence

“Residential dwelling” is clarified as any residential accommodation, but does not include hotel, motel, inn, guest house, camp–site, lodge, house boat, or like places meant for temporary stay.

Office cum residence: Bundled service to be bifurcated

 

8.

Services by a foreign diplomatic mission located in India

 

9.

Services provided by Reserve Bank of India

Services provided by RBI not taxable, Service to RBI, if not otherwise exempted is taxable

10.

Toll Charges

Collection agency collecting toll taxable

11.

Betting, gambling or lottery

Auxiliary services like organizing/ promoting taxable

12.

Transmission or distribution of electricity

 

Charges collected by developer of building is taxable as it does not have a distribution license

13.

Financial sector

  • Services of extending loans, deposits where consideration represented in Interest/discount
  • Sale Purchase of Foreign Currency amongst dealers/ banks

Administrative charges for processing the above is taxable

14.

Public Transport (with or w/o belongings)

  • Stage carriage
  • Railways other than AC and First class
  • Metro, monorail, tramway
  • Inland waterways
  • Metered cabs, auto rickshaws

15.

Services relating to transportation of goods

By road except GTA/courier

 

Taxable: Railways, Air, Vessel in coastal waters, GTA

Not taxable: Vessel in national highway

16.

Funeral, burial, crematorium or mortuary services including transportation of the deceased