Service Tax-Exempt Negative List
Here on June 20, 2012 Mr. Pranab Mukherjee, Union Finance Minister included 14 more services under Negative list to skip them from the Service Tax Positive List under the new dispensation (special permission, especially from a religious leader, to do sth that is not usually allowed or legal) that is slated to come into effect from July 1.
14 New Services’ Tax-Exempt Negative List to be added From July 1, 2012.
- Services provided by Advocates to other Advocates and Business Entities up to a turnover of Rs.10 lakh in the preceding fiscal and Law Firms.
- Companies engaged in construction of Metro Projects,
- Works Contract to schemes under JNNURM or Rajiv Awas Yojana.
- Entities providing Public Conveniences.
- Lending of Books, Publications or any other knowledge enhancing content or material by public libraries.
- Service provided to the Government, Local Authorities or a Government Authority for repair and maintenance of an aircraft.
- Auxiliary Educational Services and Renting of Immovable Property provided by educational institutions in respect of education.
- Metered Taxis, Transport of Good or Passengers
- Auto Rickshaws
- Betting
- Gambling
- Lottery
- Entry to Amusement Parks
- Electricity Transmission or Distribution by Discoms.
With the insertion of the above 14 Services the total Service Tax-Exempt Negative list goes up to 38. Other important services such as coaching classes and training institutions will come under the Tax Net, though it will not be levied on school, university education and approved vocational courses, Travel in first class and in air-conditioned rail coaches, too, will attract service tax. Hitherto, a total of 119 Services are under Service Tax Positive List were liable to pay Service Tax.
Here on July 10′ 2012 Foreign Currency Exchange Service has been included under the Service Tax-Exemption Negative List learn more about it from Why Foreign Currency Remittance is Exempted Service Taxable Service?
