Thursday, June 21, 2012

NEGATIVE LIST OF SERVICES REVISED APPLICABLE FROM 01.07.2012


on Thursday, June 21, 2012

Negative List of services is give below . There after list of exempted services are also provided.


(a) Services by Government or a local authority excluding the following services to the extent they are not covered elsewhere: 

  • (i) 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;
  • (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;
  • (iii) transport of goods or passengers; or 
  • (iv) support services, other than services covered under clauses (i) to (iii) above, provided to business entities.

(b) Services by the Reserve bank of India.

(c) Services by a foreign diplomatic mission located in India.

(d) Services relating to agriculture or agricultural produce by way of –
  • (i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed (The negative list entry in sub-clause (i) of clause (d) of section 66D is being modified by deleting the word “seed”. This will allow the benefit to all other testings in relation to “agriculture” or “agricultural produce:Budget 2013)testing;
  • (ii) supply of farm labour;
  • (iii) 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;
  • (iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
  • (v) loading, unloading, packing, storage or warehousing of agricultural produce;
  • (vi) agricultural extension services;
  • (vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.

(e) Trading of goods.

(f) Any process amounting to manufacture or production of goods.
“process amounting to manufacture or production” in section 65B(40) is being expanded to include processes under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.(Budget 2013)

(g) Selling of space or time slots for advertisements other than advertisements broadcast

by radio or television.

(h) Service by way of access to a road or a bridge on payment of toll charges.

(i) Betting, gambling or lottery.

(j) Admission to entertainment events or access to amusement facilities.

(k) Transmission or distribution of electricity by an electricity transmission or distribution utility.

(l) Services by way of –
  • (i) pre-school education and education up to higher secondary school or equivalent;
  • (ii) education as a part of a curriculum for obtaining a qualification recognized by law;
  • (iii) education as a part of an approved vocational education course.

(m) Services by way of renting of residential dwelling for use as residence;

(n) Services by way of –
  • (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
  • (ii) inter-se sale or purchase of foreign currency amongst banks or authorized dealers of foreign exchange or amongst banks and such dealers;

(o) Service of transportation of passengers, with or without accompanied belongings, by –
  • (i) a stage carriage;
  • (ii) railways in a class other than –
    • (A) first class; or 
    • (B) an air conditioned coach;
  • (iii) metro, monorail or tramway;
  • (iv) inland waterways;
  • (v) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
  • (vi) metered cabs, radio taxis or auto rickshaws;

(p) Services by way of transportation of goods –
  • (i) by road except the services of –
    • (A) a goods transportation agency; or
    • (B) a courier agency;
  • (ii) by an aircraft or a vessel from a place outside India up to the customs station of clearance in India; or
  • (iii) by inland waterways;

(q) Funeral, burial, crematorium or mortuary services including transportation of the deceased.
=======================================================
The service Tax Department has extended the Exempted services List and issued a new Amended list of Exempted  services vide notification 25/2012 dated 20.06.2012 in super session to old exemption list notified earlier vide notification 12/2012 . New 14 services has been added in the exempted category . The new notification is given below for your ready reference.





[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance
(Department of Revenue)
Notification No.  25/2012-Service Tax
New Delhi, the 20th June, 2012
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of notification number 12/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:-
1.      Services provided to the United Nations or a specified international organization;
2.      Health care services by a clinical establishment, an authorised medical practitioner or  para-medics;
3.      Services by a veterinary clinic in relation to health care of animals or birds;
4.      Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;
5.      Services by a person by way of-
(a)     renting of precincts of a religious place meant for general public; or
(b)     conduct of  any religious ceremony;
6, Services provided by-
 (a) an arbitral tribunal to -
 (i) any person other than a business entity; or
(ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year;
           (b)  an individual as an advocate or a partnership firm of advocates by way of   legal services to,-
         (i) an advocate or partnership firm of advocates providing legal services ;
        (ii) any person other than a business entity; or
        (iii) a business entity with a turnover up to rupees ten lakh in the preceding financial  year; or
     (c)  a person represented on an arbitral tribunal to an arbitral tribunal;


7.  Services by way of technical testing or analysis of newly developed drugs, including vaccines and herbal remedies, on human participants by a clinical research organisation approved to conduct clinical trials by the Drug Controller General of India;
8.  Services by way of training or coaching in recreational activities relating to arts, culture or sports;
  9.    Services provided to or by an educational institution in respect of education     exempted from service tax, by way of,-
(a)  auxiliary educational services; or
(b)  renting of immovable property;

Exemption by way of auxiliary educational services and renting of immovable property by specified educational institutes under will no longer be available. This will have the effect of restricting the scope of exemption to “Auxiliary educational services” and “Renting of immovable property services” only when
  • a. Provided by any person to Educational Institutes;
  • b. Provided by one Educational Institute to another Educational Institute
“9A.   Any services provided by, _           
(i)      the National Skill Development Corporation  set up by the Government of India;
(ii)      a Sector Skill Council approved by the National Skill Development Corporation;
(iii)     an assessment   agency approved by the Sector Skill Council or the National Skill Development Corporation;
(iv)     a training partner approved by the National Skill Development Corporation or the Sector Skill Council

in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (c)  any other Scheme implemented by the National Skill Development Corporation.”
10. Services provided to a recognised sports body by-
(a)  an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;
(b)  another recognised sports body;
11.  Services by way of sponsorship of sporting events organised,-
(a)     by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, state or zone;
(b)     by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;
(c)      by Central Civil Services Cultural and Sports Board;
(d)     as part of national games, by Indian Olympic Association; or
(e)     under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;
12. Services provided to the Government, a local authority or a governmental authority by way of constructionerection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -
(a)  a civil structure or  any other original works meant predominantly for  use other than for commerce, industry, or any other business or profession;
(b)  a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
(c)    a structure meant predominantly for use  as (i) an educational, (ii) a clinical, or  (iii) an art or cultural establishment; 
(d)  canal, dam or other irrigation works;
(e)  pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or
(f)    a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65 B of the said Act;
13.  Services provided by way of constructionerection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-
(a)     a road, bridge, tunnel, or terminal for road transportation for use by general public;
(b)     a civil structure or  any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;
(c)      a building owned by an entity registered under section 12 AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public;
(d)     a pollution control or effluent treatment plant, except located as a part of a factory; or
a structure meant for funeral, burial or cremation of deceased;
14. Services by way of construction, erection, commissioning, or installation of original works pertaining to,-
(a)  an airport, port or railways, including monorail or metro;
(b)  a single residential unit otherwise than as a part of a residential complex;
(c)   low- cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;
(d)  post- harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or
(e)  mechanised food grain handling system, machinery or equipment for units  processing  agricultural produce as food stuff excluding alcoholic beverages;
15. Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic works or cinematograph films;
16. Services by a performing artist in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, excluding services provided by such artist as a brand ambassador;
17.    Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India;
18. Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;
19. Services provided in relation to serving of food or beverages by a restaurant, eating joint or a  mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages;
20. Services by way of transportation by rail or a vessel from one place in India to another of the following goods -
(a)  petroleum and petroleum products falling under Chapter heading 2710 and  2711 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);
(b)  relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
(c)   defence  or military equipments;
(d)  postal mail or mail bags;
(e)  household effects;
(f)    newspaper or magazines registered with the Registrar of Newspapers;
(g)  railway equipments or materials;
(h)  agricultural produce;
(i)    foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or
(j)    chemical fertilizer and oilcakes;
21. Services provided by a goods transport agency by way of transportation of -
(a)  fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
(b)  goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or
(c)   goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;
22. Services by way of giving on hire -
(a)     to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
(b)     to a goods transport agency, a means of transportation of goods;
23. Transport of passengers, with or without accompanied belongings, by -
(a)  air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;
(b)  a contract carriage for the transportation of passengers, excluding tourism, conducted tour, charter or hire; or
(c)    ropeway, cable car or aerial tramway;
24. Services by way of vehicle parking to general public excluding leasing of space to an entity for providing such parking facility;
25. Services provided to Government, a local authority or a governmental authority by way of -
(a)  carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or
(b)  repair or maintenance of a vessel or an aircraft;
26. Services of general insurance business provided under following schemes -
(a)     Hut Insurance Scheme;
(b)     Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural Development  Programme);
(c)      Scheme for Insurance of Tribals;
(d)     Janata Personal Accident Policy and Gramin Accident Policy;
(e)     Group Personal Accident Policy for Self-Employed Women;
(f)       Agricultural Pumpset and Failed Well Insurance;
(g)     premia collected on export credit insurance;
(h)     Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture;
(i)       Jan Arogya Bima Policy;
(j)       National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);
(k)     Pilot Scheme on Seed Crop Insurance;
(l)       Central Sector Scheme on Cattle Insurance;
(m)  Universal Health Insurance Scheme;
(n)     Rashtriya Swasthya Bima Yojana; or
(o)     Coconut Palm Insurance Scheme;
27. Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-
(a)  the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and
(b)  a period of three years has not been elapsed  from the date of entering  into an agreement as an incubatee;
28. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution -
(a)  as a trade union;
(b)  for the provision of carrying out any activity which is exempt from the levy of service tax; or
(c)   up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;
29. Services by the following persons in respective capacities -
(a)  sub-broker or an authorised person to a stock broker;
(b)  authorised person to a member of a commodity exchange;
(c)   mutual fund agent to a mutual fund or asset management company;
(d)  distributor to a mutual fund or asset management company;
(e)  selling or marketing agent of lottery tickets to a distributer or a selling agent;
(f)    selling agent or a distributer of SIM cards or recharge coupon vouchers;
(g)  business facilitator or a business correspondent to a banking company or an insurance company, in a rural area; or
(h)  sub-contractor providing services by way of works contract to another contractor providing  works contract services which are exempt;
30. Carrying out an intermediate production process as job work in relation to -
(a)  agriculture, printing or textile processing;
(b)  cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);
(c)   any goods on which appropriate duty is payable by the principal manufacturer; or
(d)  processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of  parts of  cycles or sewing machines upto an aggregate value of taxable service of the specified processes of  one hundred and fifty lakh rupees in a financial year subject to the condition that such  aggregate value had not exceeded  one hundred and fifty lakh rupees during the preceding financial year;
31. Services by an organiser to any person in respect of a business exhibition held outside India;
32. Services by way of making telephone calls from -
(a)  departmentally run public telephone;
(b)  guaranteed public telephone operating only for local calls; or
(c)   free telephone at airport and hospital where no bills are being issued;
33. Services by way of slaughtering of bovine(deleted vide notification 44/2012 dated 07.08.2012) animals;

34. Services received from a  provider of service  located in a non- taxable territory by -
(a)  Government, a local authority, a governmental authority or an individual in  relation to any purpose other than commerce, industry or any other business or profession;
(b)  an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or
(c)   a person located in a non-taxable territory;

35. Services of public libraries by way of lending of books, publications or any other knowledge- enhancing content or material;
      36. Services by Employees’ State Insurance Corporation  to persons governed    under the Employees’ Insurance Act, 1948 (34 of 1948);
 37. Services by way of transfer of a going concern, as a whole or an independent part thereof;
  38. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;
  39. Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution.

2.   Definitions. - For the purpose of this notification, unless the context otherwise requires, –
(a) “Advocate” has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 ( 25 of 1961);
(b) “appropriate duty” means duty payable on manufacture or production under a Central Act or a State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt;
(c)  “arbitral tribunal” has the meaning assigned to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996);
 (d) “authorised medical practitioner” means a medical practitioner registered with any of  the  councils of the recognised system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;
 (e) "authorised person” means any person who is appointed as such either by a stock broker (including trading member) or by a member of a commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange as an agent of such stock broker or member of a commodity exchange;
“approved vocational education courses” is being changed to include a course run by an industrial training institute or an industrial training centre affiliated to State Council for Vocational Training. Further, courses run by an institute affiliated to the National Skill Development Corporation are being excluded from the scope of the definition because National Skill Development Corporation is not an affiliating body.(budget 2013 changes)
(f) “auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution;
(g) “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act,1934(2 of 1934);
(h) “brand ambassador” means a person engaged for promotion or marketing of a brand of goods, service, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person;
(i) “business facilitator or business correspondent” means an intermediary appointed under the business facilitator model or the business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India;
(j) "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or part of an establishment to carry out diagnostic or investigative services of diseases;
(k) “charitable activities” means activities relating to -
           (i) public health by way of -
(a)  care or counseling of (i) terminally ill persons or persons with  severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or
(b)  public awareness of preventive health, family planning or  prevention of HIV infection;
            (ii) advancement of religion or spirituality;
            (iii) advancement of educational programmes or skill development relating to,-
(a)     abandoned, orphaned or homeless children;
(b)     physically or mentally abused and traumatized persons;
(c)      prisoners; or
(d)     persons over the age of 65 years residing in a rural area; 
            (iv) preservation of environment including watershed, forests and wildlife; or
(v) advancement of any other object of general public utility up to a  value of,-

(a)  eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during 2011-12;
(b)  twenty five lakh rupees in any other financial year subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during the preceding financial year;


(l) “commodity exchange” means an association as defined in section 2 (j) and recognized under section 6 of the Forward Contracts (Regulation) Act,1952 (74 of 1952);
(m) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(n)“declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit;
(o) “distributor or selling agent” has the meaning assigned to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include distributor or selling agent authorised by the lottery- organising State;
(p) "general insurance business" has the meaning assigned to it in clause (g) of section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);
(q)“general public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature;
(r)“goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor  Vehicles Act, 1988 (59 of 1988);
(s) “governmental authority’’ means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W  of the Constitution;  
(t) “health care services” means any service by way of  diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;
(u) “incubatee” means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agreement with the TBI or the STEP to enable himself to develop and produce hi-tech and innovative products;
(v)“insurance company” means  a company carrying on life insurance business or general insurance business;
(w)“legal service”  means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;
(x)“life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance  Act, 1938 (4 of 1938);
(y) “original works” means  has the meaning assigned to it in Rule 2A of  the Service Tax (Determination of Value) Rules, 2006;
(z) “principal manufacturer” means any person who gets goods manufactured or processed on  his account from another person;
(za) “recognized sports body” means - (i) the Indian Olympic Association, (ii) Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation  recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India;
(zb) “religious place” means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality;
(zc) “residential complex” means any complex comprising of a building or buildings, having more than one single residential unit;
(zd)“rural area” means the area comprised in a village as defined in land revenue records, excluding-
the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee; or
any area that may be notified as an urban area by the Central Government or a State Government;
(ze)“single residential unit” means a  self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family;
(zf) "specified international organization" means an international organization declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply;
(zg)"state transport undertaking" has the meaning assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(zh)"sub-broker" has the meaning assigned to it in sub-clause (gc) of clause 2 of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992;
(zi) “trade union” has the meaning assigned to it in clause (h) of section 2 of the Trade Unions Act,1926(16 of 1926).
3. This notification shall come into force on the 1st day of July, 2012.
 [F. No.334/1/2012 -TRU]

(Rajkumar Digvijay)

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  1. Hi! Subsequent to Neagative list, would like to know whether the service tax is applicable on electricity power charges (at escalated rate that includes mainteance and up keep of equipment)provided to tenants by the Landlord.

    ReplyDelete
    Replies
    1. We don't found in negative list hence in our opinion it is taxable

      Delete
  2. Hardik :- we would like to know weather the service tax is applicable on Municipal Corporation work such as SUPPLY ERECTION TESTING & COMMISSIONING OF STREET LIGHT POLES on corporations road as well as ALL IN ALL MAINTENANCE WORK OF STREET LIGHT SYSTEM in Municipal Corporations of Gujarat and also Shifting of HT/LT distribution Electric line on National Highway Work.

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    Replies
    1. Please refer sr number 12 above , in my view it is covered under negative list.

      "12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -
      (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;"

      Delete
  3. weather service tax is applicable on service provided to SURAT MUNICIPAL CORPORATION(GUJARAT) by way of supply Erection Testing & Commissioning of new street light poles on public road and even is it applicable on maintenance of street light work??

    ReplyDelete
    Replies
    1. Please refer sr number 12 above , in my view it is covered under negative list.

      "12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -
      (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;"

      Delete
    2. can you tell us the date from which it is taken into consideration???

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  4. we would like to know whether service tax is applicable on shifting of HT/LT Line, Transformer and underground cable work due to expansion/new national highway work????

    ReplyDelete
    Replies
    1. Who is the service receiver ?

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    2. Final receiver is National Highway authority of India(NHAI)

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    3. You should check sr number 12-13 above

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  5. I would like to know whether service tax is applicable to STREET LIGHT JOBS carrying out for local semi govt; body such as SURAT MUNICIPAL CORPORATION (GUJARAT).

    ReplyDelete
    Replies
    1. Read Sr number 12 above in Negative list , it should be covered under it.

      Delete
  6. Is online education taxable(service tax) where a teacher collects money from students. Thanks in advance.

    ReplyDelete
    Replies
    1. It seems to be a style of coaching class ,so it is not covered in negative list.

      Delete
  7. Even we would like to know maximum annual turnover after which service tax number is required??
    we would like to know whether it is necessary to have service tax number if we are doing work which is in negative list declared by service tax department??
    Can you tell us whether when we need to pay service tax after raising bill or after we getting payment.
    Is it compulsory to do audit from CA for service tax??If yes kindly tell us within how many time we need to do

    ReplyDelete
    Replies
    1. Exemption limit is 10 lakh but registration is required if turnover is more than 9 lakh.
      If work is fall under negative list then no need to register. Further only taxable service part after abatement is considered for turnover for exemption /registration.

      if turnover is up to 50 lakh then service tax payment is to be made after receipt of service tax otherwise on raising bill

      http://www.simpletaxindia.net/2012/03/service-tax-on-receipt-50-lakh-point-of.html

      Audit by CA is not required.

      Delete
  8. i would like to know whether i need to pay the prescribed service tax for a plot (vacant land) purchase through a private limited company?

    In case yes, may I request you to highlight under which category & serial number I am suppose to refer?

    If no, may I request you to highlight under which category & serial number I am suppose to refer?

    Thanking you all in advance.

    ReplyDelete
  9. I have booked an apartment in JP Noida, earlier JP asked me to pay service tax on basic price and PLCs, but now they have sent me a letter to pay service tax on parking charge paid by me. other builders in the area are also not asking any service tax on parking chrarges, can any body enlighten on this aspect.

    ReplyDelete
  10. is renting of warehousing to FCI IS LIABLE FOR PAYING SERVICE TAX

    ReplyDelete
  11. sir i am going to start the bussiness of discount card.in which we make mamabers of our company with a some sum of amount and issued discount card which provide 10-25 % discount on our member shopsin local market in our distt. ........i want to know that service tax is applicable on discount card fees 9816343214

    ReplyDelete
  12. One agency took the help of a sub broker for arranging a warehouse for a Company. Agency has paid the Commssion to the sub broker and he raised an invoice by charging service tax to the Company. In such cases whether agency can charge service tax on invoice?

    ReplyDelete
  13. Can someone tell what are the service tax applicable as per Finance bill 2012 on:

    1) Club Membership, 2) Furnishing a studio apartment and 3)Extra Development charges of the studio apt.

    Thanks

    dinesbhunia@gmail.com

    ReplyDelete
  14. Can someone tell what are the service tax applicable as per Finance bill 2012 on:

    1) Club Membership, 2) Furnishing a studio apartment and 3)Extra Development charges of the studio apt.

    Thanks

    dinesbhunia@gmail.com

    ReplyDelete
  15. Negative / exempt list implies certain number of services on which tax is not applicable, right? What if we as a service provider give service to those under negative / exempt list? shud we apply service tax to them.
    e.g. Service provided by a veterinary Doctor is not taxable, however if we provide cleaning service to veterinary doc / clinic, then shud we apply service tax.

    ReplyDelete
    Replies
    1. No , registration required ,if exempted or services in negative list is provided only. Further registration for taxable service is also mandatory only if turnover of taxable services is more than 9 lakhs.

      Delete
    2. its not very clear to me still. We are registered under cleaning services & we apply service tax to all our clients. Kindly tell us should we apply service tax to veterinary clinic. Since service they provide is exempt but what about service they take from us. Please inform us.

      Delete
  16. The firm I work for is located in a Tech Park (ITPB, Bangalore), who charges parking fee for the parkites. Recently we got a mail from the Park management that parking fees are revised upwards due to a 12.36% service charge levied by central government. Aren't they bluffing? From the negative list of services published in the Gazette, I can see that parking fees are exempt. So that means that ITPB is fooling its clients. Or am I misinterpreting something? Please advice...

    ReplyDelete
    Replies
    1. Parking is exempted from service tax ,if it is provided to general public.

      Delete
  17. I am working for a US client and getting development fee for every month, is this amount is under Service tax?, here I am already paying around 20% of Income tax, on top we needs to pay another 12.36%? seems confusing ..., please give me more details in my case

    ReplyDelete
  18. We provide Screen Printing Job Work services under works contract, is this service covered under service tax act and secondly who shall pay the tax liability.

    ReplyDelete
    Replies
    1. Printing is exempted from service tax read sr no 30(a) above

      Delete
  19. Is practicing Astrology taxable?

    ReplyDelete
  20. Dear Sir,
    we have Engg pvt ltd company,we have USA Colloabration having licences of manufacturing product in india as per their Drawing & we sales in india, simply thy provide drawing and no other service recd from them, we payeeing them Royalty on sales in india.
    should we pay service tax on royalty in india. please advice.

    Regard
    Pawar

    ReplyDelete
  21. I am running a 32 seater mini bus on contract basis to airports authority of india. i want know how much service tax to pay.

    ReplyDelete
    Replies
    1. You should pay 100*40%*12.36%=4.944%

      first check if it is covered under reverse charge and tax is payable by AAI or not directly

      Delete
  22. What is Point of Taxation. Which logic behind it? And what is the date for payment of service tax for partnership firm?

    ReplyDelete
  23. Weather NGOs registered under Societies Registration Act are exempted from Service Taxes?

    ReplyDelete
  24. we are providing trade discount on sales effected to our buyers,whether service tax is applicable?

    ReplyDelete
    Replies
    1. Discount offered as Principal to principal is not covered under service tax as it is covered under trading of goods.

      However if dealer is working as an agent then it will be treated as commission and covered under service tax.

      In present case sales are effected to dealers ,so service tax is not applicable on trade discount or any other discount given to dealer.

      Supreme court has recently decided the case in Favor of BSNL

      Delete
  25. I have booked a flat and the builder is asking to pay service tax on the parking space purchased by me # Rs 2,50,000/- Please clarify if it is OK as per tax laws.

    ReplyDelete
  26. 1.We are doing a annual maitenance contract for a PSU and would like to know the ratio of service tax to be paid by the service provider(proprietorship firm) and service receiver(PSU).
    2. We are doing a installation of OPGW Cables as a sub contractor for a limited company and the main client is a PSU, WE would nlike to know the ratio of service tax to be paid by the service receiver(Company)and the service provider(proprietorship firm).

    ReplyDelete
  27. can u pl help me as to what will be the new tax code for selling of space on hoardings as i have to pay the arrears as at now comes under negative list.

    ReplyDelete
  28. Hi, I am offered part-time work as a business facilitator by a European firm (to promote their foreign make products in India. Is Service Tax applicable OR Are foreign exchange earners exempted??

    ReplyDelete
  29. whether Reserve Bank of India is liable to pay 'Service Tax' for services rendered by a hotel for holding official meetings ? (like that of bill of a hotel for holding Seminar)

    ReplyDelete
  30. Hi., I wish to know if the service tax is payable on parking space purchased from the builder alongwith an apartment. The booking done in 2011 , Payment of parking was also done in 2011.possession of the apartment is in 2015. I mean to convey that transaction for Parking charges has happened prior to June,2012 (latest amendment to Sevice tax Act)
    regards
    Ashok

    ReplyDelete
    Replies
    1. pls refer following link

      http://www.simpletaxindia.net/2012/10/service-tax-on-vehicle-parking-wef.html

      Delete
  31. We are a commission agent of a onion bussiness. We sell on behalf of farmer to the buyer & we get the commision. On this commission should we pay service tax?

    ReplyDelete
    Replies
    1. Onion is agriculture produce and as per negative list shown above sr no d(vii) ,service tax on commission agent services is not applicable as it falls in negative list.

      "services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce."

      Delete
  32. If Agency "A" received contract from Goverment authority(declared on negative list by dept) and sublet part to agency "B". Is agency "B" contract is taxable or not

    ReplyDelete
    Replies
    1. if it is a works contract ,then it is exempted

      Delete
    2. pls read sr no 29(h)

      (h) sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;

      Delete
  33. I would like to know is service tax applicable on purchase of drawings(sketch of a building)

    ReplyDelete
    Replies
    1. in our view service tax is applicable

      Delete
  34. hello i would like to know what kind of service tax rule is applicable on distributor of bsnl for selling recharge coupon and sim cards..
    what judgement was given by supreme court.

    ReplyDelete
  35. hello i would like to know what kind of service tax rule is applicable on distributor of bsnl for selling recharge coupon and sim cards..
    what judgement was given by supreme court.

    ReplyDelete
  36. Pest control services are coming under manpower or not

    ReplyDelete
  37. advertisement in magazine providing is this service is txable in service tax act

    ReplyDelete
  38. SERVICE TAX ON TRANSFER FEES FOR IMMOVABLE PROPERTY FOR INDIVIDUAL IT IS CHARGABLE OR NOT. MORE THAN INCOME RS. 10 LACS PER YEAR.

    ReplyDelete
  39. service tax on transfer fees in mutual concern society is applicable or not

    ReplyDelete
  40. we have the business of distribution wherein we have hire vehicals for distributing the goods to stores. Is we covered under service tax??

    Gaurish

    ReplyDelete
  41. dear sir,

    I purchhased new flat at DURGAPUR(WB) and for that agreement done on Jul2011 and registration done on 5th Jun 2012 and flat is not still handed over to me within a week will be handed over. I am retired ex serviceman and registration on my flat was done in value amt 1579000/-. Now builder asking that I am liable to pay service tax and if not paid in time then fine will be imposed on me. I am totally blanked. It is requested to guide me what to do?
    1. Am I liable to pay
    2. After what amount of purchase flat service tax is must n is there exemption sealing/
    3. rebates for Ex Defence personnel are there or not

    ReplyDelete
    Replies
    1. you are liable to pay if your contract with contract also says so .Rate is 3.09 %
      no upper or lower limit
      no rebate for defence personnel

      Delete
  42. Are institutional caterers subject to paying service tax...?

    ReplyDelete
  43. Dear Sir,

    Please confirm, is service received from Road side Lorry, Freight paid to truck Owner/ operator (without Consignment note) is fall in in mega exemption list under notification 25/2012ST dt 20..06.2012 or in negative list Notification No. 19/2012ST ?

    ReplyDelete
  44. Dear sir
    i would like to know wheather space hoarding given on rent is taxable or exempted under service tax rule?

    ReplyDelete
  45. Is advertising on banners is liable to service tax?????? Kindly also give reference of case laws if any

    ReplyDelete
  46. package tour operator working on commission basis..will i be included in the service tax?

    ReplyDelete
  47. whether consultancy charges paid to a consultant hired for consultancy for construction of roads in colonies by govt department is covered under service tax or not

    ReplyDelete
  48. I am working on contract basis with a Home Shopping Channel. Income is above 9laks p.a. Do i have to register for Service Tax No? Is payment of service tax applicable to me?

    ReplyDelete
    Replies
    1. if you are working as an contract employee and your tax has been deducted under salaries and form 16 has been issued to you then no ,no service tax applicable ,no registration required.

      If you are working as consultant /professional (in books at least) and tax has been deducted u/s 194J @ flat rate of 10 % and form 16A has been issued to you then yes , you should register under service tax

      Delete
  49. Thank your for the information!! its seems very much useful.

    ReplyDelete
  50. We are providing cleaning services to public sector undertaking, We are registered in work contract service tax. Is service tax is applicable. Now the system of 50% deduction from employer and 50% by the service provider from bill is implemented. Whether we have to give service tax invoice or we can say that service is exempted for cleaning work as cleaning work is excluded in works contract. Please guide us.

    ReplyDelete
    Replies
    1. in simple terms Works contract means where material and services both are provided. In cleaning services only services are provided ,so it is not covered under works contract.

      However it can be covered under Manpower supply ,if you are providing manpower only and control and supervision of work is of service receiver.

      If control and supervision of cleaning work is covered in your scope then it is not covered under reverse charge and 100 % tax is to be deposited by you and you can recover it from PSU(service receiver)

      Delete
  51. I am running a dance classes and dance performance and also event under a one company name . I have registered the company under service tax. Last year the company's turn over was above 50 lac including all the activities.
    I have collected service taxes for performances and event and deposited the same to the department. For the dance classes i have not collected any service tax as I know is it under exempted list. Please tell me if any changes has been made for dance class exemption.

    Thank you in Advance.

    ReplyDelete
    Replies
    1. Dance classes are exempted as per sr no 8 of exemption notification 25/2012 dated 20.06.2012 given above reproduced here under

      "Services by way of training or coaching in recreational activities relating to arts, culture or sports"

      Delete
  52. hi, please advice whether commission earned from export/imports of agricultural produce as an commission agent liable for service tax?

    ReplyDelete
  53. is service tax applicable on Maintenance of Street Light at RIICO's Industrial Areas situated in the City

    ReplyDelete
  54. Hi I would like to know whether money earned by way of practising astrology or giving consultancy in the filed of astrology liable for the service tax?

    ReplyDelete