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Revised Negative List of Service Tax 2013-14 (Section 66D)

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Revised Negative List of Service Tax for 2013-14 (Section 66D)

June 6, 201322 Comments

The charging section of the Finance Act, 1994, Section 66B provides that service tax should be levied on all services except the services which are specified in Section 66D of the said Act. As per Section 66D of the Financial Act, 1994, Negative list of Service Tax for 2013-14 is given here which is revised as per latest budget. There are currently 17 heads of Services which are given in the “negative list”. This Negative list of service tax is very important because every activity not covered under this list is chargeable to Service Tax. This list is also very useful in CA IPCC Paper 4 Taxation also.negative list of Service-Tax

Negative List of Service Tax 2013-14

Negative list of Service Tax is comprised of following 17 heads. I have given all the 17 heads of negative list of Service Tax below.

  1. Services by Government or a local authority excluding the following services to the extent they are not covered elsewhere:
    1. 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;
    2. services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
    3. transport of goods or passengers; or
    4. Support services, other than services covered under clauses (i) to (iii) 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 –
    1. agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing;
    2. supply of farm labour;
    3. processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter essential characteristics of agricultural produce but make it only marketable for the primary market;
    4. renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
    5. loading, unloading, packing, storage or warehousing of agricultural produce;
    6. agricultural extension services;
    7. Services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for 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. Services by way of –
    1. Pre-school education and education up to higher secondary school or equivalent;
    2. Education as a part of a curriculum for obtaining a qualification recognized by law;
    3. Education as a part of an approved vocational education course.
  13. Services by way of renting of residential dwelling for use as residence;
  14. Services by way of –
    1. extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
    2. inter-se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers;
  15. Service of transportation of passengers, with or without accompanied belongings, by –
    1. a stage carriage;
    2. railways in a class other than – (A) first class; or
      (B) an air conditioned coach;
    3. metro, monorail or tramway;
    4. inland waterways;
    5. public transport, other than predominantly for tourism purpose, in a vessel between
    6. places located in India; and
    7. metered cabs, radio taxis or auto rickshaws;
  16. Services by way of transportation of goods –
    1. by road except the services of –

      1. a goods transportation agency; or
      2. a courier agency;
    2. by an aircraft or a vessel from a place outside India up to the customs station of clearance in India; or
    3. by inland waterways;

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

2 extra services included in Negative list

Two more services have been included in the negative list for service tax. These are:

Vocational courses offered by institutes affiliated to the State Council of Vocational Training; and, testing activities in relation to agriculture and agricultural produce.

 

The Finance Minister has also accepted the request of the Film Industry that full exemption of service tax granted on copy right on cinematography be limited to the films exhibited in cinema halls only.

 

All air conditioned restaurants will be brought under the service tax net. At present service tax does not apply to those air conditioned restaurants which do not serve liquor. But considering this distinction to be artificial, P. Chidambaram has proposed the uniformity of service tax for the two.

 

The rate of abatement for such homes and Flats which have a carpet area of 2000 sq. ft. or more; or have a value of Rs. 1 crore or more, has been reduced from 75% to 70%. However, low cost housing and single residential units will continue to enjoy existing exemptions from service tax.

That’s all in the list of Negative Services for 2013-14.

If you have any query then kindly comment below.


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Comments (22)

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  1. Hitendra Nath says:

    Dear SIr,

    Thanks for the negitive list .
    I would like to know whether point 4 ( Support services ) can be applicable for an individual who is residing and working in India
    as consultant for a foriegn based company. This individual is exporting his intellectual knowhow of the market in India and receive fees in convertible foriegn exchange. directly from the foriegn company.

    The services and knowhow are used by the foriegn company to globally compete in the indian market .

    Since in this case this Indian resident individual is providing support service to a FOriegn business entity – therefore he is NOT liable to pay service tax.

    Please confirm if this understanding is correct.

    Thanks and Best REgards,
    Hitendra N.R
    a

  2. Narendra Jain says:

    valuation rule 10 of Place of Provisions of Service Rules, 2012 expressed: Place of provision of a service of transport of goods in the place of destination of goods.
    In Freight forwarding business place of destination is outside India and as per this rule service tax will not applicable on Freight forwarding business. but nothing mentioned in Negative List.

    In this situation what we should do,

    if margin add in Export Freight, Service tax will be applicable.

    Please advice

  3. Sheraz Ali says:

    Dear Sir,

    With kind respect I would like to ask you a question i.e. Is the TAILORING is under cover in service tax act with the turn over is more than 10.00 lacs.

  4. N.Santhoshni says:

    Whether service tax applicable to a special economic zone authority?
    Kindly reply as soon as possible. Thank You in advance:)

  5. Aseem Chhabra says:

    Pl do advice whether selling of paintings by artist fall in the services tax or it is matter of vat etc.

  6. Pradeep says:

    Is contract for hiring ambulance services taxable. Please note ambulances are used for bringing patients to hospitals for treatment.

  7. Vivek Singh says:

    Dear,
    Please give suggestion on service tax liability on grant-in-aid.
    For Example:- A coaching institute of IAS/IPS/BANKING/SSC Exam and Academy running programme under free coaching for SC/BC/Minority students and received grant-in-aid by the government of India.
    Is it comes under service tax liability.

    Please give me detail with circular no. and explanation.

    Thank
    Vivek Singh
    9355602224

  8. Anas says:

    Services to educational institution up-to higher secondary level is noted.
    my doubt is services to engineering college ( B.TEch , M.Tech )is exempted from Service tax ?

    • G.Raghunath says:

      Please inform whether Insurance premium paid by the Educational Institutions for their own/hired school/college buses are exempted from paying Service Tax while taking/renewing the motor policies

  9. Divya says:

    Let me know whether Service tax under reverse charge mechanism applies in case payment made by indian company to skype, godaddy.com ,google adwords ?

    whether indian co is liable to pay service tax?

    whether import of service rules apply?

  10. Amit Maheshwari says:

    Dear Sir,

    THis is informed to you we are working with Natrip Implementation society at pitampur,dhar,MP,Please confirm to me service tax applicable or not against submission of RA Bill.

    Regards,

    Amit Maheshwari

  11. SUNITA GROVER says:

    Please let me know if dental services are covered by Service tax.

  12. Narinder Rehani says:

    Dear sir,

    Please let me know whether service Tax applicable on Advocates.If yes, under which service and what is the rate of abatement.

    Regards,

    Narinder Rehani

  13. Gyanendra Kumar Bhatnegar says:

    Sir,
    whether on Directors remuneration paid as salary to full time directors of Private Ltd Co on which T D S Is deducted U/S 192 per the Income Tax Act, and Form 16 is issued to them is liable to pay Service Tax under reverse charge.
    Thanks
    Regards
    G.K.Bhatnagar

  14. bipin says:

    Sir..
    My query is regarding hotels and restraints. Whether non AC hotels.. Take away counters like dominoz, mc Donalds, subways where we place order directly and AC restarunts with no licence to serve liquor are supposed to charge us service tax ???
    And same qustion for food courts in mall and multiplexes also.

    Would appreciate if you clear my doubt’s here by emailing me.

    I have argued with above mentioned eating food joints and they returned my service tax back to me… So need a proper clarification.

    Thanks

  15. Vikram Agarwal says:

    Dear sir

    My query is regarding service tax implication on government contracts for road building etc.

    1. Is it applicable on contracts directly taken from government bodies.
    2. Is it applicable for subcontracts of the above government contracts.
    3. In case a road is made privately but for the benefit of public. Will it attract service tax.

    Rgds

  16. S.K.Sharma says:

    Sir,
    Please confirm that job work done for Assembly and testing of electronic PCB boards, falls under negative list or it is a taxable service.
    Can we take it under category ( Any process amounting to manufacture or production of goods.)
    Here we use our premises,consumables,tools and labor.
    Material is provided by service receiver.
    No Sale only labor charges claimed.

    Regards.

  17. b.s.bansal says:

    sir/madam,

    pl. guide me that cicil work done for hafed i.e construction of godown.

    is contractor liable to pay service tax or service tax not applicable ?

  18. chanchal says:

    whether service tax to be charged by the actor or model who providing modeling or acting as an actor in serial (if yes) under which head of service tax such services to be charged

    PLZ reply

  19. Rashi khandelwal says:

    Can u plz explain the point no. 1 dat these r exempted or not…

  20. Munish Gupta says:

    Sir Please ask me whether is service tax applicable on Agents providing service of travelling Agent, Tour Travel, Tickting of Airways etc….

  21. S.Patra says:

    Please tell me applicability of service tax on edc/idc collected by builder on flat sale

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